Citizens Property Insurance is shedding homeowners insurance policies slowly
Florida’s Citizens Property Insurance has been working to depopulate itself over the past year and a half. The state-run organization is typically the last and best place for people in Florida to find homeowners insurance coverage, but the organization itself has been crippled by financial problems for the past several years. Citizens Property Insurance exists as a major financial liability for the state, which is why the organization has been forced by lawmakers to shed policies. This endeavor, however, has been less successful than lawmakers had hoped.
Estimates from Citizens are “disappointing”
Nearly one in six policyholders of Citizens Property Insurance are expected to receive notices that their policies will be taken up by private insurance companies in the coming week. This is somewhat lower than what the organization had anticipated and lawmakers are calling the estimation “disappointing.” Several private companies have agreed to take up the homeowners insurance policies shed by Citizens Property Insurance, but the state-run company seems to be having trouble letting these policies go effectively.
Citizens to drop 1 million policies by beginning of next year
Some 205,736 policies are expected to be acquired by 10 insurance providers in the state. A total of 390,897 policies have been approved to be taken up by private insurers in the coming months, but lawmakers have been showing concern that the organization will be able to release the 1 million policies it is meant to by the beginning of next year. Private companies seem eager to take up new home insurance policies, but many of these companies are competing for a select few policies that are likely to be the most profitable for them.
Private insurers eager to provide homeowners insurance coverage
While Citizens Property Insurance is making slow progress in depopulating itself, the organization has been expressing confidence that it will be able to meet its depopulation quota within a timely manner. The fact that private companies are willing to take up the homeowners insurance policies being shed by the state-run company is also a relatively good sign, as insurers have typically been wary of providing coverage in Florida due to the natural disasters the state is has experienced in the past.