Rental Insured Citizens

You may wind up paying a significant amount of any shortfall caused by a future hurricane. In 2005 the Legislature created two types of properties insured by citizens-a “Homestead” category that includes renters with lease agreements (unlike the familiar Homestead Exemption), and a non-homestead category that covers second homes and month-to-month renters.

Meaning simply, if Citizens suffer a shortfall after another hurricane, the non-homestead owners would be levied first.
If that’s not enough, both the homestead and non-homestead owners would be levied gain.
And if there were still a shortfall, all policyholders throuhout the state would then be levied.
If you own a rental property and have tenants without a lease, you could potentially be levied 90% of your premium amount. If there is a lease in place, the potential levy is only 60%. So, it may make sense to keep your tenants on a long-term agreement.