Over the past few months we’ve been updating our clients about the takeout of the Citizens Property Insurance Policies in Central Florida. We’ve mentioned that the State is looking to depopulate its insurance company and move millions of policies from the state-controlled market to the private insurance market. Because this issue is confusing for some and affects a few of our clients we wanted to explain exactly what Citizens is, how it came to be, and what this depopulation means for you.

Citizens Property Insurance Corporation was created in the wake of the disastrous hurricane seasons of 2004 and 2005. Private insurance companies would no longer insure older homes and some coastal properties. To provide this insurance the state of Florida created the non-profit, tax exempt corporation. The decision to reduce the amount of policies held by Citizens is in an attempt to reduce the risk to taxpayers should another catastrophic hurricane make landfall.

Because Florida hasn’t seen a hurricane in 10 years, private insurers are more inclined to write policies due to growing surpluses and reinsurance. This move to private insurance from Citizens will no doubt benefit the insured. While Citizens provided many who were unable to purchase insurance with much-needed coverage, private insurance that is now available will provide much more robust coverage at reasonable rates.

If your policy is being removed from Citizens in the upcoming months, have no fear. You are entitled to keep your insurance for the duration of the policy period, and when you’re ready to switch over to the private market, your insurance agent at Wayne Anthony Insurance is ready to help get you started. Got questions? Call us today!