Carriers in Florida are being reminded by state regulators that the deadline to apply for Citizens Property Insurance Corp. takeouts in November is rapidly approaching.
The Florida Office of Insurance Regulation announced in a bulletin this week that carriers need to submit their applications by July 28. The buyouts are a part of Citizens’ depopulation plan, which is required by law and aims to encourage more people to return to the private insurance market.
Citizens, originally intended by lawmakers as an insurer of last resort, now has more than 1.3 million policies in place and is Florida’s largest property insurer.
Requests to withdraw policies from Citizens must specify the number and type of policies being withdrawn, as well as the account number from which the withdrawals will be made. Insurance companies must also demonstrate their ability to cover the higher claims by submitting documents of their financial resources and business strategies. Find out what you need for takeout right here.
Citizens policyholders are required by law to accept a takeout offer that is at least 20% more than their current premiums or they must cancel their coverage with Citizens. Citizens outlined that if a policyholder receives a takeout offer and does nothing, their coverage will be transferred to the new insurer.
According to OIR, key carriers have shown renewed interest in the Citizens depopulation initiative this year. In 2023, seven businesses are taking part, and the demand for insurance coverage is already higher than it was in all of 2022. For the October assumption date, around 184,000 policies were asked to be taken out.
In the August 2023 takeout round, OIR permitted many insurance companies to offer takeovers. Among these companies were Slide Insurance (which offered to assume 25,000 policies) and Loggerhead Insurance (which offered to assume up to 1,000 policies).