PALM BEACH GARDENS, Fla. — A Palm Beach Gardens homeowner is warning others after a switch from Citizens Insurance left him without water damage coverage — a gap he didn't discover until a pipe broke under his home.
Hub Spooner received a takeout offer, moving him from Citizens Insurance to Slide Insurance. He assumed his coverage would remain the same.
WATCH BELOW: Homeowner warns of coverage gaps in Citizens Insurance takeouts
"With Citizens, I had water damage coverage; you would think with the policy rolling over, being told nothing changes, other than your premium going up," Spooner said. "Well, I had a water leak, and that's when you need insurance, and they said you have an exclusion, no water damage coverage," Spooner said.
The water pipe break left Spooner with an $8,000 plumbing repair bill, and he still needs to replace the flooring in his home.
Spooner said he doesn't fault Slide, noting that what happened to him is actually common among Citizens takeout policies.
"I think you're doing a good thing by making everybody aware that, first of all, that every company isn't identical," Robert Norberg of Arden Insurance in Lantana said.
Norberg told me many insurers conducting Citizens takeouts can have different coverage policies, which are outlined in a Citizens chart.
Norberg pointed out that private companies taking on Citizens customers will sometimes leave out coverage such as water damage but will offer homeowners a chance to buy it back.
As of Feb. 20, Citizens is down to 336,410 policies, a significant drop from 1.4 million just a couple years ago.
The take outs are mandatory for Citizens policyholders if the new premium is 20% or less than their current Citizens premium.
As for Spooner, he says he has few options other than to pay and offer a warning to homeowners who get new policies
"The advice I would give is to make sure they understand the policy. I've read there is so much legal mumbo jumbo in there. I'm not an insurance guy; there is a lot of legalese in there that I wasn't aware of," Spooner said.
The bottom line: if you receive a new homeowners policy, go over everything in that policy — and if you can, review it with your agent.
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Matt Sczesny is determined every day to help you find solutions in Florida's coverage collapse. If you have a question or comment on homeowners insurance, you can reach out to him any time.
