In Florida, what is the Citizens Property Insurance Corporation?
Correct Answer
B) A state-created insurer of last resort for property insurance
Citizens Property Insurance Corporation is Florida's state-created insurer of last resort, providing property insurance when coverage is not available in the private market. It was created by the Florida Legislature to ensure property insurance availability. Option A (private company) is incorrect as Citizens is a state entity, not private. Option C (federal flood program) confuses Citizens with the National Flood Insurance Program. Option D (nonprofit claims assistance) mischaracterizes Citizens' role as an actual insurance provider.
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Previous Question
A real estate agent is representing a buyer who is purchasing a waterfront home in Miami-Dade County. The property is located in a Special Flood Hazard Area (SFHA). The buyer is obtaining an FHA loan. What insurance requirement must the agent inform the buyer about?
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A homeowner in Tampa has a homeowner's insurance policy with a $2,500 hurricane deductible. After Hurricane Debby causes $15,000 in covered damage to their roof, the insurance company pays $12,500. Three weeks later, Hurricane Elsa causes an additional $8,000 in covered damage. How much will the insurance company pay for the second hurricane under Florida law?