Citizens Property Insurance policyholders in Florida are receiving some unexpected good news as they may see a decrease in their property insurance premiums if they switch to a new insurance company. This comes after Citizens offloaded approximately 300,000 policies earlier this month and state regulators recently approved six more private insurance companies to take on an additional 153,000 policies from Citizens.
With the aim of depopulating Citizens, which currently holds over 1.4 million policies, this move is seen as a positive step in Florida’s property insurance crisis. Brightway Insurance Agent Matt Carlucci Jr. believes that while the crisis is not yet over, this development indicates that the state is moving in the right direction.
Carlucci explained that the increase in private insurance companies entering the market has resulted in heightened competition, ultimately leading to lower rates for Florida homeowners. Citizens’ customers are advised to be on the lookout for offer letters in the mail, allowing them the option to switch from Citizens to a private company.
Carlucci emphasizes the cyclical nature of the insurance market, stating that when private companies become more aggressive in their offerings, prices eventually fall. Thus, this current trend of companies becoming more competitive could lead to even more favorable rates for homeowners in the future.
However, not all policyholders are receiving positive news. Some have expressed their dissatisfaction with the new policy costs, with some seeing increases of up to $1000 per year. This has led to frustration and disappointment among homeowners who feel they have no choice but to switch. On the other hand, some taxpayers are glad to see Citizens offloading policyholders, as they are weary of subsidizing premiums for others.
Carlucci remains cautiously optimistic about the situation, stating that Florida has largely avoided major hurricane damage so far this season. As hurricane season draws to a close, insurance agents believe that the outlook could improve even further.
It is important to note that the legislation passed during a special session allows policyholders to reject an offer from a private company if it quotes a premium that is 20% higher than their current rate. However, if the offer is less than 20% higher, policyholders are required to take the deal.
Overall, the decrease in property insurance premiums for some Citizens policyholders and the increased competition among private insurance companies in Florida are positive signs for homeowners. While challenges still remain, it is hopeful that the state is taking steps in the right direction to address its property insurance crisis.