Florida’s Citizens Property Ins. Approved To Remove 130K Policies in 2016

As Florida continues with the original plan for its state ran insurance corporation, Citizens, to be the home insurer of last resort, the office of insurance regulation recently approved the removal of just over 130,000 policies to start off the new year. This figure is a combination of approximately 127,000 residential insurance policies and 3,000 commercial policies.

As reported in a previous article, Citizens Insurance has approved removing more than a million policies year-to-date. This process transfers these home insurance policies back into the private insurance sector where the state of Florida and Citizens would prefer them. The latest round of approvals will have these policies transferred to the private sector via the following insurance companies or “take-out companies”

  • Anchor Property & Casualty Insurance Company
  • Heritage Property & Casualty Insurance Company
  • Safepoint Insurance Company
  • Southern Oak Insurance Company
  • Weston Insurance Company

The startling figure, in my eyes, is that only 170k policies have actually been transferred in 2015 as of late-September. How you ask? … I’m going to get to that in just a moment.

Citizens Property Insurance Corporation’s Opt-Out Process

As the title suggests, with all of the approvals coming down from the FLOIR (Florida office of insurance regulation) to send homeowner’s policies back to the private sector, there is an opt-out process to stop this from happening. I’m sure when you started reading this article you might have been thinking to yourself this has got to be illegal? It would be if Citizens did not give the homeowner the ability to keep their current policy with them. Florida homeowner’s must go through this opt-out process in order to stay insured through Citizens. This is not always the best option for the homeowner. Everyone’s situation is different and each home is uniquely different. Below, I’m going to tell you why going through the opt-out process may not be the right decision for you, your family and your financial security.

Why Staying With Citizens Property Insurance May Not Be Right For You

As I said a few times above and in past articles, Citizens was first established by the state of Florida out of necessity and was to be the carrier of “last resort” for Florida homeowner’s who could not secure a home insurance policy from the private market. This was all caused to the devastating hurricanes that crossed the state in the mid-2000’s, which forced many private insurance companies into paying out millions in claims. So let’s just say that Citizens Property has and will continue to play a crucial role in the Florida insurance market, but it is definitely not always the best home insurance choice for homeowner’s and certainly not always the most inexpensive. Below are the two main reasons why you should shop your Citizens’ homeowner’s policy around the market cause it could cost you!

10 Years Since Hurricane Wilma – There are a lot more private insurance carriers in the market in Florida. You could be paying too much as there are many home insurance companies competing for your business. At Brightway Insurance, we have access to twice as many insurance carriers as traditional independent insurance companies.

Citizens Home Rates Too Low – So attractively low, that should a devastating hurricane hit they would facing a 1.5 Billion dollar liability. This is why there transferring policies back to the private sector. You might wind up footing the bill if they’re unable to pay your claim.

Three Year “Come-Back Clause”

Should you read this article and do nothing, allowing your homeowner’s policy to get dumped by Citizens and transferred to a private insurance company. Should your new Florida insurance carrier raise your home insurance premium within the first 3 years, you’ll have the option to return to Citizens’ through the renewal process. I’m coining this, as stated above, as the “come-back clause” ☺

The Long and Short Of It…Citizens Home Insurance Policies

As an insurance professional and the owner of multiple agencies I promise, should you choose to contact my agencies, you won’t be sold a home insurance policy! We work with you to come up with common sense solutions to your home insurance needs. At Brightway Insurance, Cole Family Agencies we focus on building long-term relationships with our customer’s and would never sacrifice your trust over a few dollars. We are not insurance sales professionals, we’re insurance solution experts! I’ve committed my career to helping people protect the important things in their lives and it feels good to make a difference. Every time we assist a customer secure better coverage and wind up saving them money in the process is a very satisfying feeling. My team and I work hard to earn your trust, your business and the opportunity to assist your family and friends when we “do right” by you! Should you have questions regarding any type of insurance, please as always, contact my team!!! We’re ready and waiting to hear from you!

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A Blog offering Tips and helpful navigation to better Insurance coverage in the State of Florida

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