Florida’s Citizens bequeaths policies to United Insurance
Florida’s Citizens Properly Insurance has been working to depopulate itself of the vast majority of its policies in recent months. The insurer, which is run by the state, is being pressured by lawmakers to address many of the issues that have pushed it to the verge of financial disaster. This pressure has led Citizens to take measures to shed policies, such as raising rates on coverage. This week, United Insurance has announced that it has assumed a significant number of these policies.
United Insurance takes over 15,133 policies
United Insurance has finalized a deal to acquire some 15,133 policies from Citizens Property Insurance. The insurer is one among many that has agreed to take on the insurance policies that are shed by the state-run insurance company. Lawmakers had approached these companies in the months before the depopulation of Citizens in the hopes of finding a home for the policies that would be cast off. In acquiring these policies, United Insurance has ensures that the consumers represented by these policies will see no lapses in coverage.
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Policies not likely to see any major changes in short term
United Insurance reviewed the policies extensively to ensure that they comply with the company’s own underwriting standards. These policies are expected to see only modest changes to their coverage options in the future, while they may see changes in premiums almost immediately. For some, premiums will grow, becoming more expensive. Others will see their premiums drop, but not likely by a significant margin.
Citizens continues depopulation efforts
The depopulation of Citizens Property Insurance has been a hot topic among Florida homeowners. Many of these people could only find the coverage they needed from the state-run insurer, which offered this coverage at a significantly lower rate that private companies. The problem, however, is that low rates often mean low profits, thus creating serious financial troubles for the state-run insurance organization. United Insurance aims to provide the consumers that have been cast off by Citizens with the service they need without introducing inordinate costs.