Citizens Reinspections and Retail Inspections

Citizens committee discussing reinspections and upcoming retail inspections (38:00 to 76:00):

http://thefloridachannel.org/video/121312-citizens-property-insurance-corporation-board-of-governors-committee-meetings/

…questions begin at 43:30

What I got from listening to this… please feel free to add to this list, clarify or elaborate on anything below.

  • Re-Inspection program ending
  • 360,000 re-inspections completed by end of this year
  • so far 3% of those wanting a third (reinspection of reinspection)
  • Retail inspections going live through Inspection Depot, Muller, Quality built in January
  • Policyholder pays one of above company for wind mit (or other inspection)
  • Citizens will not reinspect if inspected by one of these companies
  • mit credits that went away earned them 200 million (120 million net)
  • inaccuracies in wind mit data started all of this
  • companies above provide citizens with management of incoming inspections, quality assurance check, validation of inspectors credentials

Sounds like a violation of fair trade practices…

Forgot this: Most of the inaccurate inspections were performed by the above named companies.
I guess the WMEs must have pics of the Citizens top dogs in compromising positions!

Here is the Florida Statute relating to unfair trade practices:

501.204 Unlawful acts and practices.—
(1) Unfair methods of competition, unconscionable acts or practices, and unfair or deceptive acts or practices in the conduct of any trade or commerce are hereby declared unlawful.
(2) It is the intent of the Legislature that, in construing subsection (1), due consideration and great weight shall be given to the interpretations of the Federal Trade Commission and the federal courts relating to s. 5(a)(1) of the Federal Trade Commission Act, 15 U.S.C. s. 45(a)(1) as of July 1, 2006.
History.—s. 1, ch. 73-124; s. 1, ch. 83-117; s. 4, ch. 85-63; s. 2, ch. 90-190; s. 3, ch. 93-38; s. 2, ch. 2001-39; s. 23, ch. 2001-214; s. 2, ch. 2006-196.

It would appear that the 3 companies noted above in post #2 will have a distinct market advantage over the rest of us. You know, kinda like the distinct advantage contractors and engineers are currently enjoying with their ability to hire unlicensed individuals to perform wind mitigation inspections for their respective companies while denying that same right to the rest of the licensees (also small business owners) enumerated in F.S. 627.711. Both instances noted above- would appear to violate the unfair trade practice act. Of course, I am not an attorney- but just a lowly licensed home inspector.

There real question: Is there anything we can do about it?

It must be great to make the rules. Now that 200 million gross and 120 million net will become a 200 million net by shifting the cost of the “re-inspections” or “inspections” to the homeowner and still have “their inspector” doing the inspection for the insurance company. :wink: Talk about having your cake and eat it too. - and my cake, and your cake.

They have found an even better way to perpetuate this scam! I have to give them credit for that. :mrgreen: :mrgreen:

This was the plan from the get go. Retail phase starts jan

On an optimistic note, perhaps the wind mit syndicate will raise their retail prices.

:slight_smile: :slight_smile: :slight_smile: :slight_smile: :slight_smile: :slight_smile: :slight_smile: :slight_smile: :slight_smile:

Exactly, that is the whole problem.

They keep giving the same idiots the reins.

Universal Property and Casualty has had a similar preferred inspector program for some time…

Universal has negotiated a reduced inspection fee with their vendors where Citizens will not (see 70:40 to 71:30 of video).

Not a freaking thing. Suck it up and work around it :mad::mad:

Nope the same bastards will keep the same prices just like they have every change.

Citizens “reinspections” were done under their Inspection and Outreach Program. I guess, technically, these were not “Retail Inspections” so Licensed Home Inspectors were not allowed to be a part of this program. (https://www.citizensfla.com/inspection/inspectors_inspection_firms.cfm). Now that Retail Inspections begin next month, is there any reason why Licensed Home Inspectors with proper qualifications should not be able to participate in the program (limited to Retail Inspections only)?

Legally, no. But then again, you have to remember who we are talking about here. Add Citizens, corrupt, improperly trained contractors or individuals working under them, and the lack of training for those that interpret these reports, you have the recipe for a big bowl of **** soup! All at the expense of the homeowner.

Any licensee listed in FS 627.711 can do a wind mitigation inspection. The issue is that the insurer can exercise their right to question the original inspection (if not done by their preferred provider). The insurance company can then “softly” steer the homeowner to the insurance company’s preferred provider by saying that they will not accept a wind mit from the homeowner’s choice of service providers- but they will accept the wind mit from one of the three “preferred providers” a.k.a. - the wind mit syndicate. In order to participate in the “program”, you will need to bow to the syndicate and allow them to pinch you for 1/2 of the fee.

Michael you seem to be chomping at the bit to do these freaking things.
Have you been doing any?

If not you may change your opinion of them come July.

Believe me as someone who was living off of them for some time they suck.

Most of the customers suck, the idiots at the agencies suck, the underwriters suck, the picture requirements suck, trying to make a living while offering competitive prices suck, the building departments suck and anytime of the year other than now suck. I really would not wish this job on my worst enemy.

Do take into consideration that even if you beat all those odds you better damn sure bank 1/2 your funds cause there are some real slow times and no benefits when you are self employed. The bills keep coming in even when inspections are slow. NO LONG TERM SECURITY because things keep changing.

I am sure none of it will hold you back but good luck. You will remember my comments in July.

I really do wish you good luck.

Michael, we’ve been doing wind mits for some time but not under the umbrella of an Inspection Management Company. Citizens retail inspections start next month and they will practically guarantee no reinspections. We are just preparing for the New Year, keeping our options open and looking for new opportunities. Good luck to you too and Merry Christmas.

The problem with preferred vendor deals is that agents prefer to use local companies. I do have an issue with any company that applies a different standard to quality inspection work and their preferred vendors.

They certainly have the right to review inspections but I am not sure they can arbitrarily apply a different standard to everyone outside vendor contracts.