I wanted to bring to your attention some critical changes happening in Florida's homeowners insurance landscape that could affect you.
Citizens Property Insurance Corporation, a state-run insurance company, has initiated a "depopulation program" aimed at reducing its number of policyholders. More than 300,000 homeowners have received an offer letter from private insurance companies as part of this initiative. The deadline to respond to these offers has been extended to October 10th due to a vendor's mailing delay.
Here's what you need to know:
Some homeowners have reported a significant increase in their insurance rates—up to 61% in some cases—when switching from Citizens to a private insurer.
If you've received an offer letter, it's crucial to respond by the deadline. Failure to do so will result in an automatic switch to the new insurer at the indicated price.
Options for Rejection
If the new offer is more than 20% higher than your current rate with Citizens, you have the right to reject it. If it's within 20%, you'll need to either accept the offer or shop for coverage on the open market.
The private insurance companies involved in this program include Monarch National Insurance Company, Safepoint Insurance Company, Southern Oak Insurance Company, Slide Insurance Company, and Florida Peninsula Insurance Company.
If the offer is above 20% of what Citizens cost, the homeowner can reject it.
What To Do
If the offer is within 20% of Citizens' cost, you have to leave Citizens either through accepting the takeout offer or shopping yourself for coverage on the open market, which has been very challenging due to the lack of carriers in Florida. That's why so many people are on Citizens to begin with.
If you need help shopping around for homeowner's insurance, don't hesitate to reach out. We work with some of the best insurance brokers in Florida to make sure you get a good rate.Posted by Andy Mandel on