Ovation Insurance Exchange vs Citizens: The Ultimate Guide to Choosing Wisely

Choosing between Ovation and Citizens for your Florida home insurance? Explore their key differences, benefits, and drawbacks to make an informed decision.

Ovation vs. Citizens: A Florida Homeowner's Insurance Choice

Florida’s unique climate and geography make homeowners insurance a critical consideration for residents. When choosing a provider, two names often come up: Ovation Home Insurance Exchange and Citizens Property Insurance Corporation. Both offer coverage options for Florida homeowners, but they operate under different models and cater to distinct needs. Let’s explore their offerings and help you decide which one might be the right fit for both homeowners and agents in Florida.

Ovation Home Insurance Exchange: A Member-Owned, Florida-Focused Approach

Ovation Insurance Exchange positions itself as a “new era in homeowners insurance,” emphasizing its member-owned structure and focus on Florida homeowners. This model allows members to share in the company’s success and have a voice in its management through the Subscriber Advisory Committee.

Ovation Home Insurance Exchange is set to begin selling policies in mid-2024 through existing agents, showcasing its commitment to providing competitive options and the innovative structure of its operation.

Member-Owned Model

Ovation’s unique structure sets it apart. Policyholders are also members of the exchange, sharing in both the risks and rewards. This fosters a sense of community and shared responsibility, aligning the company’s interests with those of its members. The dedicated capital ensures increased capacity and coverage options, leading to better pricing and benefits for homeowners in Florida.

Florida-Focused

Ovation understands the unique challenges faced by Florida homeowners. They offer enhanced coverage options and competitive rates designed specifically for the state’s unique needs, demonstrating their commitment to serving the Florida community.

Comprehensive Coverage and Benefits

Ovation provides a range of coverage options and benefits beyond standard home insurance, including:

• Homeowners Insurance: Protection for your home, personal belongings, and liability.
• Additional Coverage Options: Equipment Breakdown & Service Line Coverage,Identity Theft Protection,Flood Insurance, and Social Media Expense & Resolution Services.
• Wind Mitigation Discounts: Premium discounts for homes with hurricane-resistant features.
• Flexible Deductible Choices: Allowing you to customize your coverage to fit your budget.
• Claims Support: Comprehensive management of sales, service, and claims support for efficient and effective customer service.

Efficient Claims Process

Ovation prioritizes a straightforward claim submission process with competitive prices, offering multiple channels for filing, including online, by phone, or through your agent. They also collaborate with experienced vendors to mitigate further damage to your home, showcasing their commitment to swift and effective claims resolution.

Strong Customer Service

Ovation, through its existing agents, boasts a 90% call answer rate within the first minute, demonstrating their dedication to providing accessible and responsive customer service. They also maintain regular communication with members through monthly email updates, keeping them informed and engaged.

Citizens Property Insurance Corporation: Florida's Insurer of Last Resort

Citizens Property Insurance Corporation occupies a unique and essential role in Florida’s insurance landscape, serving as the state’s designated “insurer of last resort.” When private insurers are hesitant or unable to provide coverage, Citizens steps in to ensure that Florida homeowners aren’t left without protection.

The citizens clearinghouse program is a strategic initiative that enhances operational strategy and supports future growth by enabling participation in assumptions from the Citizens property insurance entity.

Safety Net for High-Risk Properties

Citizens’ primary function is to provide a safety net for homeowners who face challenges securing coverage in the private market. This includes properties located in high-risk areas prone to hurricanes or floods, as well as those with prior claims history that might make them less attractive to private insurers. By offering coverage to these homeowners, Citizens ensures that everyone has access to essential property insurance. The strategic plans for the new Ovation Home Insurance Exchange include participating in the Citizens clearinghouse program, which is based on future citizens assumptions.

State Regulated Rates and Affordable Premiums

As a state-created entity, Citizens’ rates are subject to regulation, ensuring they remain affordable and accessible to all Floridians. This can be particularly beneficial for homeowners in high-risk areas where private insurers might charge exorbitant premiums. While Citizens’ rates may not always be the lowest in the market, they offer stability and predictability, and efforts like the Ovation Home Insurance Exchange aim to provide more affordable premiums, particularly valuable in regions prone to natural disasters.

Depopulation Program

Citizens actively participates in a depopulation program, which allows private insurers like Ovation to assume policies from Citizens’ portfolio. This program aims to transfer policies from the state-run insurer to the private market, potentially offering homeowners better coverage options and more competitive rates. It also helps reduce the financial burden on Citizens and promotes a healthier and more competitive insurance market in Florida. The introduction of new dedicated capital through Ovation Home Insurance Exchange enhances the company's capacity and coverage options, benefiting homeowners and agents in Florida.

Public Service Mission

Citizens’ core mission is to serve the public interest by ensuring that all Floridians have access to necessary property insurance. They prioritize providing essential coverage and maintaining financial stability to fulfill this vital role. While their focus may not be on offering a wide range of additional benefits or personalized service, their commitment to providing a safety net for homeowners in need is unwavering. Windward Risk Managers, known for managing Florida Peninsula and Edison Insurance, have recently launched Ovation Home Insurance Exchange, enhancing insurance services and coverage options for homeowners in the state.

Ovation vs Citizens Insurance

While both Ovation and Citizens Insurance offer protection for your most valuable asset, their distinct approaches and offerings cater to different needs and circumstances.

This comparison will shed light on the key differences between these two providers, helping you navigate your options and make an informed choice for your Florida home. From coverage options and premiums to customer service and claims processes, we’ll break down the essentials so you can confidently select the insurance partner that best suits your needs and priorities. The same experienced management team responsible for Edison Insurance, which has achieved substantial written premiums in the Florida market, will oversee Ovation Home Insurance Exchange's operations.

Company Structure and Focus

Ovation, a private, member-owned reciprocal insurance exchange, sets itself apart by fostering a sense of community and shared responsibility among its policyholders. This unique structure allows members to actively participate in the company’s management and share in its financial success.

Their focus lies in providing innovative insurance solutions specifically tailored to the needs of Florida homeowners. In contrast, Citizens Property Insurance Corporation operates as a state-created entity, serving as Florida’s “insurer of last resort.” Their primary mission is to ensure that all Floridians have access to essential property insurance, even in high-risk areas or with challenging insurance histories. Florida Peninsula Insurance, along with its affiliate Edison Insurance, has launched Ovation Home Insurance Exchange to provide additional capacity and coverage options for homeowners, leveraging their management team's extensive experience in the Florida Peninsula.

Availability and Accessibility

Ovation operates in the competitive Florida market, but its availability may vary depending on location and individual risk factors. They underwrite policies based on their assessment of risk, which could lead to declinations or higher premiums for certain properties.

On the other hand, Citizens is available to Florida residents who have been unable to secure coverage in the private market, making them a crucial safety net for those facing challenges in obtaining insurance. Ovation Home Insurance Exchange is set to begin selling policies in mid-2024 through existing agents, showcasing its commitment to providing competitive options and the innovative structure of its operation.

Coverage Options and Benefits

Ovation offers a comprehensive suite of insurance products, including homeowners, condo, renters, dwelling fire, and flood insurance.

They also provide enhanced coverage options like equipment breakdown, service line coverage, identity theft protection, and even social media expense & resolution services. Citizens, on the other hand, primarily focuses on providing essential homeowners insurance coverage, with potentially limited additional options.

Premiums, Discounts, and Competitive Rates

Ovation aims to offer competitive rates and more affordable premiums in the Florida market, providing wind mitigation discounts to incentivize homeowners to strengthen their properties against hurricanes.

Citizens’ rates are regulated by the state to ensure affordability, but they may be higher than those offered by private insurers, especially for high-risk properties.

Customer Service and Claims

Ovation prides itself on personalized service, with a focus on quick response times and clear communication. They also work with experienced vendors to provide emergency mitigation services and comprehensive claims support during the claims process. Citizens, being a large state-run entity, might have a less personalized approach to customer service, and their claims process may vary depending on the specific circumstances.

Strengths and Considerations

Ovation’s strengths lie in its comprehensive coverage options, competitive prices, personalized service, member-owned structure, and Florida-focused approach. However, their availability and pricing may vary depending on your location and property’s risk profile.

Citizens’ primary strength is its guaranteed availability for those unable to find coverage elsewhere. Their state-regulated rates and financial stability offer reassurance to policyholders. However, their premiums may be higher, and their customer service and coverage options may be less extensive compared to private insurers.

Ultimately, the choice between Ovation and Citizens depends on your individual needs and priorities. Consider factors like coverage options, premiums, customer service, and availability when making your decision. Research both providers thoroughly, compare quotes, and consult with an insurance agent if needed to ensure you select the best insurance solution for your Florida home.

Choosing the Right Fit: Ovation or Citizens?

The best choice between Ovation and Citizens depends on your individual needs and circumstances as both homeowners and agents can benefit from the options available.

• Ovation: If you’re looking for a member-owned company with a Florida focus, competitive rates, comprehensive coverage options, and a strong emphasis on customer service, Ovation might be the right choice for you.
• Citizens: If you’ve been unable to find coverage in the private market or prioritize guaranteed availability and state-regulated rates, Citizens could be your solution.

Before making your final decision, it’s crucial to:

• Get quotes from both providers: Compare the coverage options and premiums offered by both Ovation and Citizens to see which one best fits your needs and budget.
• Read the fine print: Carefully review the policy documents from both companies, paying close attention to coverage limits, exclusions, and deductibles.
• Consider your priorities: Do you value a member-owned company with a Florida focus and personalized service, or is guaranteed availability and state-regulated rates your primary concern?

Remember, the right insurance provider is one that offers the coverage you need at a price you can afford, while also providing excellent customer service and a smooth claims process. Take the time to research and compare your options, and don’t hesitate to ask questions to ensure you make an informed decision that protects your Florida home and provides peace of mind.

Making the Informed Choice: Your Florida Home, Your Decision

In the end, the decision between Ovation and Citizens boils down to your individual needs and priorities. Ovation’s member-owned structure, focus on Florida-specific needs, and comprehensive coverage options, which may result in more affordable premiums, may appeal to those seeking personalized service and a sense of community. On the other hand, Citizens’ guaranteed availability and state-regulated rates offer a safety net for homeowners facing challenges in the private market.

Remember, thorough research is key. Carefully compare quotes, review policy details, and consider factors like customer service and claims processes before making your final decision. Whether you opt for the personalized approach of Ovation or the guaranteed availability of Citizens, ensure your Florida home has the protection it deserves.

Ready to take the next step? Consult with one of our experienced insurance agents today for a free, no-obligation quote and personalized guidance on choosing the right policy for your Florida home.