Understanding Citizens Depopulation

What Is Citizens depopulation?

Citizens Insurance is a government formed insurance company with over 1 million insurance policies. They have so many policies in fact that it has become difficult to ensure proper customer service and care for their clients. Florida law is requiring Citizens insurance to return many of their policies to the private sector. What that means is their policies can be absorbed into other private carriers such as American integrity, Cypress Property & Casualty, Homeowners Choice and Heritage to name a few.

 

What does this mean for Citizens policy holders?

Citizens will send out a “Takeout” offer to you informing that a private insurance carrier will be absorbing your policy. This means you are no longer limited to just Citizens coverage. Once the letter is sent out to you no action is required to accept the assumption from the private insurer. You can opt-out of the “Takeout” process by submitting your “opt-out” form to the “Takeout” private insurer within 30 days.

Running out of time

Among the recent changes to Citizens insurance policies another more pressing fact has arose. Citizens will no longer be renewing High value policies! In 2013 Florida lawmakers have called for citizens to no longer renew homeowner policies that range from 900,000 and up. This year the cap is down to 800,000. By next year 2017, Citizens will not renew homeowner’s policies above 700,000. Every year the cap is suspected to drop to a possible 500,000. With all the high value policies being renewed with other private carriers each year the best carriers with the best rates will soon fill up. The more time those high value homeowners policies remain with Citizens the less likely they are to fall to a great carrier. Time is running out for those who want to jump off the Citizens ship in to a stable private carrier. If you or someone you know fall in to this category please call Rothrock & Associates.

 

The benefits for Citizens policy holders

If you are selected for the “Takeout” process and your policy is assumed by a private insurer there are a few benefits to this.

  • No longer limited to just Citizens coverage
  • Possible better rates and better coverage
  • Increased customer service and support

 

Confused? I was too.

With the changes in Citizens “Takeout” process many of our clients just like you have been a little confused on what exactly all this means. If you have questions or concerns about you’re Depopulation notice from Citizens please feel free to contact your agent here at Roth rock and Associates. We are always here to help.

August 22nd, 2016 by Rothrock & Associates