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Citizens suspends new policies statewide ahead of Tropical Storm Bertha
The insurer of last resort halted new coverage and additional coverage changes after 11 a.m. on July 19 when watches or warnings are issued for any part of Florida.
Florida’s insurer of last resort, Citizens Property Insurance Corporation, has suspended new policies and coverage changes statewide as Tropical Storm Bertha strengthens in the Gulf of Mexico, marking an early operational stress test for a property insurance market that has been working to reduce risk exposure over the past two years.
Citizens said no new policies or changes providing additional coverage could be written after 11 a.m. on July 19. The restriction applies whenever the National Hurricane Center issues a tropical storm or hurricane watch or warning for any part of Florida, limiting property owners’ ability to purchase coverage or increase protection once a storm is approaching.
Bertha had maximum sustained winds of 50 mph on Tuesday morning and was moving northwest at 5 mph, positioned about 110 miles south of Panama City, Florida, and 170 miles southeast of Mobile, Alabama, according to the National Hurricane Center. The storm was expected to move near or along the northern Gulf Coast before turning west, with the potential for heavy rainfall across Florida, Alabama, Mississippi, Louisiana and into parts of Texas.
The National Hurricane Center projected storm surge of two to four feet between the mouth of the Mississippi River and the Mississippi-Alabama border, and one to three feet of inundation in other coastal areas near the storm path, with greatest water levels expected close to and east of the storm’s center. Citizens noted that insurers will need to closely monitor the split between wind and water damage, since wind losses are typically handled under homeowners or commercial property policies subject to deductibles, while rising-water and storm-surge damage generally requires separate flood insurance.