What Citizens Trust Company Insurance Covers for Property Managers

Citizens Trust Company Insurance is a property insurance option for South Carolina landlords and property managers

Citizens Property Insurance is Florida's insurer of last resort, but it also serves South Carolina property owners who cannot find coverage through standard insurers. For property managers in South Carolina, Citizens may be an option when private insurers decline to write a policy or when you need coverage quickly. The company covers dwelling fires, wind, hail, and other perils on residential and commercial properties, though rates and availability shift based on risk assessment and state regulatory decisions.

Citizens is not the same as a private insurance company. It exists because state law requires a safety net for property owners who genuinely cannot obtain coverage elsewhere. That means Citizens typically charges more than private insurers, has higher deductibles, and may impose restrictions on claims or coverage limits. Understanding how Citizens works—and when it makes sense to use it—helps you manage costs and avoid coverage gaps.

Key Takeaways

• Citizens Property Insurance covers fire, wind, hail, and other named perils on residential and commercial properties in South Carolina, but rates are usually higher than private insurance.
• You must show proof that you were denied coverage by at least one private insurer before Citizens will write a policy for most property types.
• Citizens policies carry higher deductibles—often 5 to 10 percent of the home's insured value—compared to private insurers' standard $500 or $1,000 deductibles.
• Coverage limits and availability change based on state regulatory decisions and Citizens' financial position, so your renewal terms may shift year to year.
• Property managers should review Citizens policies annually and continue shopping private insurers, since moving back to a private carrier can lower premiums significantly.

When Citizens Property Insurance becomes available to South Carolina property managers

Citizens will not write a policy unless you have been turned down by a private insurer. Most property managers must obtain a written denial from at least one standard carrier before Citizens will consider your application. Some properties—those in high-risk coastal areas or with older construction, previous claims, or code violations—are more likely to face denials from private insurers and end up at Citizens.

The denial requirement exists because Citizens is meant to be a last resort, not a first choice. If you own a property that private insurers are willing to cover, you should use that coverage instead. However, if you have shopped multiple carriers and been denied, or if you need immediate coverage and private insurers have long waiting lists, Citizens can step in. The application process typically takes two to four weeks, though expedited review is sometimes available.

What Citizens Property Insurance covers and what it excludes

Citizens covers the building structure, attached fixtures, and named perils including fire, wind, hail, theft, and vandalism. For rental properties, the policy covers the dwelling itself but not the tenant's personal belongings. If you own a multi-unit building, Citizens can insure the structure and common areas. Flood is not included—you must purchase a separate flood policy through the National Flood Insurance Program or a private carrier if your property is in a flood zone.

Citizens does not cover maintenance issues, wear and tear, or damage from lack of upkeep. Mold, water damage from poor drainage, and damage from deferred repairs are typically excluded. If a pipe bursts because you failed to winterize the property, Citizens will likely deny the claim. The policy also excludes business liability, loss of rent, or additional living expenses unless you add those as optional endorsements, which increase the premium.

Deductibles and how they differ from private insurance

Citizens deductibles are significantly higher than those offered by private insurers. A standard private policy might have a $500 or $1,000 deductible. Citizens typically requires a deductible of 5 to 10 percent of the insured value of the home. On a property insured for $200,000, that means a $10,000 to $20,000 deductible—money you pay out of pocket before Citizens covers anything.

Some Citizens policies offer a flat deductible option instead of a percentage, but these are less common and may not be available for all property types. Wind and hail damage sometimes carries a separate, higher deductible. Before you bind coverage with Citizens, confirm the exact deductible amount and whether it applies to all perils or only certain ones. A high deductible means you absorb more risk, so factor that into your decision to use Citizens versus continuing to shop private carriers.

How Citizens rates compare to private insurance

Citizens premiums are almost always higher than private insurance for the same property. The company charges more because it accepts riskier properties that private insurers reject, and because it operates as a nonprofit insurer of last resort rather than a profit-driven business. On a $200,000 home, you might pay $1,200 per year with a private insurer and $2,000 or more with Citizens—a difference that compounds over time.

Rate increases at Citizens can be steep. The state insurance commissioner must approve all Citizens rates, and when the company faces large claims from hurricanes or other events, rates often rise across the board. Your renewal premium may jump 10 to 20 percent or more in a single year. This is another reason to keep shopping private insurers annually: if you can move back to a private carrier, you may save hundreds of dollars per year.

How to apply for Citizens Property Insurance coverage

Start by contacting Citizens directly through their website or by phone. You will need to provide the property address, construction details (year built, square footage, number of stories), current coverage information if you have it, and proof of at least one denial from a private insurer. Citizens will ask about prior claims, code violations, and the property's condition. Be honest: misrepresenting the property can lead to claim denials later.

Citizens will order an inspection of the property before issuing a policy. The inspector checks the roof condition, foundation, plumbing, electrical systems, and overall maintenance. If the property fails inspection—for example, if the roof is near the end of its lifespan or there is visible water damage—Citizens may require repairs before binding coverage or may decline the policy altogether. Once the inspection passes and you pay the premium, coverage typically begins within a few days.

Managing a Citizens policy as a property manager

Review your Citizens policy every renewal period and continue to shop private insurers. Market conditions change, and a property that was uninsurable two years ago may now may have access to for private coverage at a lower rate. When you receive your renewal notice, take that as a signal to request quotes from at least three private carriers. If you get an offer, compare the total cost—premium plus deductible—not just the annual rate.

Keep detailed records of any maintenance, repairs, or improvements you make to the property. These records help if you need to file a claim and also strengthen your case when applying to private insurers. If Citizens denies a claim, you have the right to appeal. Contact the South Carolina Department of Insurance if you believe Citizens has treated you unfairly or if you have questions about your coverage.

Frequently Asked Questions

Can I get Citizens Property Insurance without a denial from a private insurer?

No. Citizens requires proof that you were denied by at least one standard carrier. Some properties in very high-risk areas may be denied by multiple insurers; in those cases, Citizens may accept your application after you show denials from two or three carriers. Contact Citizens directly to ask about your specific property.

Does Citizens cover flood damage?

No. Flood is never covered under a standard Citizens property policy. If your property is in a flood zone, you must purchase a separate flood policy through the National Flood Insurance Program or a private flood insurer. Check your property's flood zone status with your local floodplain manager or through FEMA's flood map tool.

What happens if I don't disclose prior claims or property damage when I apply?

Citizens can deny claims or cancel your policy if you misrepresent the property's condition or history. Always answer application questions truthfully. If you are unsure whether something counts as a prior claim, ask Citizens before submitting your application.

Can I cancel a Citizens policy early if I find private insurance?

Yes. You can cancel Citizens at any time, usually with 10 days' written notice. If you find a private insurer willing to cover your property, switch as soon as the private policy is bound. There is no penalty for leaving Citizens early.

How often do Citizens rates increase?

Citizens rates are approved by the South Carolina Department of Insurance and can increase annually. Rate hikes vary by year and by region within the state. Your renewal notice will show your new rate; if it increases significantly, that is a good time to shop private insurers again.