Florida Approves Property Insurance Companies to Assume More Citizens Policies

In a significant move to bolster the state's property insurance market, Florida regulators have given the green light to several insurance companies to take over more policies from Florida's state-run Citizens Property Insurance Corporation. This decision comes as part of a broader effort to reduce the number of policies held by Citizens, which has grown to become the largest insurer in the state.

The approval allows companies such as Slide Insurance, Florida Peninsula Insurance Company, and Loggerhead Reciprocal Interinsurance Exchange to assume a greater number of policies. This move is expected to help distribute the risk more evenly across the private sector, potentially stabilizing the market and offering more options to homeowners. The transition is particularly crucial as Florida has been grappling with the challenges of rising premiums and a shrinking private insurance market.

Insurance Commissioner Michael Yaworsky emphasized the importance of this development, stating that it aligns with the state's goals of promoting a competitive insurance environment. He noted that the increased participation from private insurers could lead to more competitive pricing and better coverage options for Florida residents.

The process of transferring policies from Citizens to private insurers is set to begin in the coming months, with an estimated timeline for completion by the end of the year. Homeowners affected by the transition will be notified and given the opportunity to review their new policy terms before the change takes effect.

This development marks a pivotal moment in Florida's ongoing efforts to manage its property insurance crisis, which has been exacerbated by frequent hurricanes and legal challenges faced by insurers. As the state continues to navigate these complex issues, the involvement of private insurers could play a critical role in shaping the future of property insurance in Florida.

• Florida
• Florida Peninsula Insurance Company
• Loggerhead Reciprocal Interinsurance Exchange
• Slide Insurance