Citizens Unloads Florida Homeowners Insurance Policies Into Private Market

Now that regulators in Florida’s insurance industry have given the green-light to 12 private insurers, those companies will assume almost a half-million insurance policies from Citizens Property Insurance. The move represents the largest shift of policies from the state’s control into private hands.

It’s also being seen as one of the most important steps toward shrinking the number of policies held by Citizens – something that’s been seen (and proven) as a liability to all Floridians.

Private Insurers Will Assume Policies that Meet Their Criteria
Citizens, operated by the State of Florida, currently has just over 900,000 policies with 4,000 new applications being filed with the state each week. Many of the policies that will be assumed by private Florida insurers will be homeowners’ insurance policies. However, private insurers are allowed to take policies that meet their own criteria – meaning the number may be closer to, or less than, 400,000.

While some in the insurance industry are touting the move as proof that the private homeowners’ insurance market in Florida is thriving, others are calling it a long overdue shift of risk from the public sector onto the backs of private insurers. For years, the Florida homeowners insurance market has been skewed due to the policies that Citizens has held and their practices within the market.

Floridians Still On The Hook For Citizens’ Shortfalls, But The Future Looks Better
As a result of Citizens home and business insurance practices in the past, Floridians have been left with the burden of assessments to pay off money owed on storms that caused damage nearly a decade ago. Residents of Florida, regardless of who holds their homeowners insurance policy, have been paying the assessments which have been a drain on Florida’s economy.