While Citizens Reduces Insurance Policies, Floridians are Left Confused

As Citizens does its best to reduce the number of policies it has, many policyholders are confused – even resentful – at the methods the state-run insurer is using to lower numbers. The current goal of Citizens is to vastly reduce the number of policies so it can zero-in on its official mandate: to insure those who are unable to find adequate coverage through insurers on the open market.

Citizens is starting to feel some pushback from policyholders – mostly those who realize that Citizens has a far better financial footing than any of the insurers who are taking on these former Citizens policies. To make matters worse, Citizens is dumping thousands of policies into the open market while they are cutting rates – a combination that isn’t sitting well with former policyholders who feel “pushed out” by Citizens.

Opting Out and Implied Consent – Citizens’ Home Insurance Rules Creating a Hassle
First off, if a person has Citizens as their Florida home insurance carrier, they are required to opt-out of being handed over to another insurer. There’s a form that must be completed to stay with Citizens – otherwise, there’s implied consent that your policy will be moved. The problem is that many claim they aren’t getting the forms – or they are getting the forms but are tossing them as their new insurance company sends them.

Obviously, getting a piece of mail from an insurer with whom you’ve never done business can cause confusion and lead one to throw away such mail. On the Citizens side of things, they aren’t making it very easy to stay with them, either. Follow-up letters sent by Citizens to homeowners don’t include an opt-out form, but it does include strongly worded language that warns against staying with Citizens – noting that a surcharge in the amount of 45% of their premium may have to be paid. This is a bold claim and an unlikely event, considering the $7.6 billion surplus Citizens has amassed.

On top of this, former Citizens policyholders are at the mercy of their new insurance carrier’s rates when it comes time to renew their policy, leaving many to wonder if they should have stayed with Citizens in the first place. But, of course, at that point it’s too late to return to Citizens – once again, leaving Floridians with a bad taste in their mouths.

Education: The Best Protection for Florida Home Insurance Policyholders
So what do you do as a policyholder? The first thing you should do is educate yourself. And, with all the information (and misinformation) floating around these days, it can be difficult and time-consuming.

A better alternative is to reach out to an experienced Florida insurance broker who can listen to your particular circumstances and give you the best advice for your situation. If you’re in the Orlando area, feel free to give us a call and see how we can help.

For more information on your Orlando Home Insurance policy, call Corkhill Insurance at 407-898-8891.