New initiative may help Citizens send policies to private companies
Florida’s Citizens Property Insurance has launched a new initiative that is designed to further depopulate itself of costly homeowners insurance policies. The state-run insurer had been suffering from serious financial issues in the past, which are associated with the state’s exposure to natural disaster and the disasters that had visited the state in the past. Citizens has overcome many of its past issues, but is still working to shed policies and the organization is encouraging policyholders to find coverage from private insurance companies that are operating in the state.
State-run insurer continues to depopulate itself of policies
Citizens Property Insurance is the largest insurance provider of its kind in Florida. The insurer currently accounts for the majority of homeowners insurance policies that are active throughout the state. Property owners tend to turn to the insurer to find affordable coverage, as private insurance companies tend to charge more for the protection they offer to properties in Florida. Depopulating itself of policies is part of Citizens’ ongoing plan to reduce its financial risks.
New clearinghouse will send policies to private insurance companies
Citizens has launched a new clearinghouse for homeowners insurance policies. This week, those with protection from the state-run insurer will have to seek out new coverage from the private insurance companies that are participating in the clearinghouse. These insurers will be purchasing policies from Citizens and will take on the responsibility of these policies. Private insurers are meant to keep premiums with 15% of those that had been offered by Citizens Property Insurance previously.
Homeowners express some concern regarding receiving coverage from private insurance providers
The clearinghouse has been approved by the state’s legislators. Lawmakers have been pressuring Citizens Property Insurance to shed policies for more than a year. This endeavor is meant to reduce the financial strain that the state-run insurance company puts on the state. Homeowners have expressed some concern regarding receiving coverage from private companies. Coverage from private companies is typically more expensive because of the risks that insurers are exposed to in Florida. Past natural disasters and other issues have made providing coverage in Florida a risky and costly issue.