Citizens requiring 2 policies for duplex - Help me?

Question

Hello there,I have bought a duplex worth $665k; the previous owner told me she's paying $3500 in total for Citizens.I have went through an agent and they told me initially it'll cost about $4000 a year. Which was fine.Later on I was sent a letter stating they are cancelling my insurance policy and I should contact my agent. Turns out they want to have separate policy for the smaller unit.This is a deattached duplex. Smaller unit is 450 sqft; larger one is 1000sqft. They do not have a different door number; in fact small one doesn't even have its own address. It only has separate electricity and internet line; shares water with the main one.

Now the agent/citizens are saying this:The new policy for the small unit will be $3,158 a year for a coverage of $88,700

For the big unit coverage amount to $177,900 premium for this dwelling is  4,136.00

So the total of $7300; which seems insane for these coverage amounts!

Is my agent not doing something right, or is there an issue with Citizens? I haven't heard from people that for duplex you'd require 2 policies.

PS: This is in a no flood zone.

I also personally think the premium for the small unit and for how much it covers is ridiculously high.

Gianny Niebla · Answer

I am going to assume you do not have an option if you are working with citizens. I was the manager for an insurance agency where I mostly underwrote citizenz policies. There is something wrong here you should only have 1 policy. I am assuming that both structures are in one folio if that is the case your agent or the underwriter at citizens made a mistake. It happens more often than you would think. My advice find an agent that writes a lot of policies with them as citiziens is very diffrent. If you want I can look this over and help out.

Cameron Moore · Answer

Hi @Sarp Ka, I would find an Insurance Broker as soon as possible in your area. That sounds like the carrier (Citizens) just does not like that kind of risk and so does not rate it in a favorable manner. A broker can shop the market and find who is looking for that type of risk. As far as the detached duplex goes, there are endorsements within one policy that will cover it all under one policy. But you need someone who is knowledgable in that regard.