Property owners that have Citizens policies were sent letters that they must get an appraisal for the replacement cost of the home in order to renew the policy.
This replacement cost is not a “market value” as in a traditional FannieMae home appraisal for mortgage financing. It is a cost approach and for the cost new, exclusive of depreciation.
The letters are saying that the policy has been "cancelled." However, as long as the property owner fulfills the new requirements, including the "replacement cost new" for the structure, the policy will be renewed.
A new policy is that homes whose replacement value is more than $750,000 will require shutters. This shutter rule is part of a 2007 insurance legislation which is now being enforced.
I have an extensive background in building construction and we can prepare these replacement cost reports.
Please contact me at 305 663-7334 x107 and we can discuss the "insurance appraisals" with you on both commercial and residential properties.
Thank you, we'll be in touch!