Florida Relentless Hurricane Insurance Takeout Targets 79,000
The ongoing depopulation of Citizens Property Insurance Corporation continued Tuesday with the approval by Florida’s insurance regulator to “takeout” over 79,000 residential and commercial property insurance policies.
The Florida Office of Insurance Regulation approved the “removal” of up to 78,897 personal residential policies and 500 commercial residential policies, according to a statement from the regulator.
Counting today’s announcement, the total number of policies approved for take-outs from in 2015 to 488,405, according to the statement. Policies approved for takeout in 2014 was 1,109,644, however, with an acceptance rate near 30 percent with the final year-end number of policies “removed” from Citizens was 416,623.
According to the takeout plan approved by the Florida legislature to move more hurricane risk into the private market, policyholders may choose to remain covered by Citizens during take-out offers, however, they may be at risk of higher assessments.
The insurers approved to make takeout offer this round are:
- First Community Insurance Company: up to 12,897 personal residential policies.
- Heritage Property & Casualty Insurance Company:up to 20,000 personal residential policies and up to 500 commercial residential policies.
- Mount Beacon Insurance Company: up to 29,000 personal residential policies.
- Prepared Insurance Company: up to 17,000 personal residential policies.
Risk Market News Newsletter
Join the newsletter to receive the latest updates in your inbox.