What "events" are covered by ZERO SELECT?
The event causing the damage must be a named storm or numbered event as reported by the National
Hurricane Center of the National Weather Service This does include tornadoes and tropical storms
provided they meet the abovementioned criteria. PCS now defines catastrophes as events that
cause $25 million or more in direct insured losses to property and that affect a significant
number of policyholders and insurers.
How does the ZERO SELECT policy pay if there is more than one storm affecting the same property in the same year?
The ZERO SELECT policy follows the primary- if the primary is a multiple event policy; our policy
will cover up to two (2) storms per season.
What is included in the coverage?
Anything that is listed in the primary policy as being covered by the wind/hurricane policy
is covered in the ZERO SELECT policy. This includes Business Income, Screen Enclosures, etc...
as long as it is included on the wind/hurricane policy.
What areas are you writing in?
We currently cover all of Florida excluding Monroe county. You can do a quick
check using our zip code reference guide on www.citoninsurance.com or
you can call us at 888-317-2544.
Please clarify how ZERO SELECT would apply to Condo with Multiple Buildings.
If the primary policy has one (1) deductible for multiple properties, ZERO SELECT will cover all of the properties
listed on the primary. ZERO SELECT has a maximum deductible of $2 million PER BUILDING $10 million total. If each
building has a separate deductible, they all must have separate ZERO SELECT policies. MUTIPLE BUILDINGS ARE OFTEN
TIMES UNIQUE SITUATIONS, WE STRONGLY ENCOURAGE YOU TO CALL AND TALK WITH OUR CUSTOMER SERVICE REPRESENTATIVES TO
DISCUSS YOUR SPECIFIC PROPERTY 888.317.2544.
Can ZERO SELECT be purchased for a Builders Risk Policy?
Yes. The only stipulation is that if the insured value increases throughout the project a new policy would
need to be written each time the value changes. If the primary is written for final build value than only
one (1) policy is needed.
What are the factors taken into consideration for the ZERO SELECT rate?
- Total Insured Value (TIV) of the property
- Zip code of the property
- Building type (residential/commercial)
- Deductible amount on primary policy
- Construction type
- Age of property
- Number of floors
Are there limitations to available capacity outside the tri-county area?
There are limitations and it all varies according to location. ZERO SELECT policies will be bound on a
first-come first-served basis. Starting January 2009, capacity will open up considerably throughout the entire state.
Can ZERO SELECT be bound if a storm is in the water?
Yes. The ZERO SELECT policy will not cover events that are named and hit land within 7 days of binding the policy.
For example, if you bind a policy on the 1st and there is a named storm in the water that hits land by the 8th,
the damage is not covered for that storm. Should the storm not hit land until after the 8th the damage would be
eligible for coverage (provided it meets policy criteria).
Do I need to add coverage A, B, C and D to get my TIV?
No. You will need to use the value that the deductible is derived. For example:
Coverage A- Residence has a limit of $300,000
Coverage B- Other Structures has a limit of $30,000
Coverage C- Personal Property has a limit of $150,000
Coverage D- Loss of Use has a limit of $60,000
In this scenario they homeowner has a 2% Hurricane deductible which is calculated on the $300,000 (coverage A). This gives the homeowner a deductible of $6,000. This is the amount that the ZERO SELECT policy will be based on ($6,000). The premium will be calculated on $6,000 and the amount of damage that must be exceeded is $6,000. This damage can occur to any combination of A,B,C and D.
If an insured's claim is less than the primary policies deductible, is a payout under CITON available?
No. ZERO SELECT only pays once the primary deductible has been exceeded.
Do I have to have money in hand to bind?
No. There are three options:
- CITON will directly bill the insured
- You can send in a check with the policy
- You can pay online with a credit card
Is ZERO SELECT a buy down and/or can it be used with a buy down?
ZERO SELECT is not a buy down, it is a separate policy that insures the entire deductible but it can be used in
conjunction with a buy down. The insured can purchase a buy down and ZERO SELECT would cover the adjusted deductible.
For example if the primary deductible is $20,000 and the insured bought it down to $10,000. The insured could purchase
ZERO SELECT and the cost would be based on the $10,000 deductible and if it is a qualifying event with damage exceeding
$10,000, CITON would cover the $10,000.
How does an agent/broker/producer get set-up?
Call our Customer Service Representatives (888.317.2544) and they will get you registered.
If a home is sold, can the ZERO SELECT policy transfer?
Yes, if the primary policy transfers.
Is the ZERO SELECT premium fully earned? What about if the insured sells the property?
It is fully earned but will be seasonally adjusted if the insured sells the property.
Is there a minimum premium?
If a catastrophe hits and the underwriter doesn’t have enough revenue to pay for the claims, is it backed by the state or is there any guaranteed pay for the claims?
It is not backed by the state. We are reinsured for a 1 in 100 year event through carriers that maintain an A- Rating.
If it is not concurrent with primary, what happens when primary renews with property amount higher than what was quoted at the time of the ZERO SELECT policy being written?
A new policy would need to be generated and CITON would provide an early renewal credit and apply this towards the new rate.
Does ZERO SELECT apply to Citizens policies?
Who's paper is this written on?
The underlying issuance of the policy is through IAT Specialty. A.M. Best A- Rating