Citizens Property Insurance Corporation is a not-for-profit government corporation insuring Florida homes and businesses that are unable to purchase property insurance in the private marketplace. As the “insurer of last resort,” Citizens is actively trying to reduce its exposure by transferring policies to the private sector with its depopulation program.
Through this program, private insurance companies–approved by the Florida Office of Insurance Regulation–select polices they would like to assume, or “take out” of Citizens. With few exceptions, any active personal residential policy may be selected by a takeout company.
According to Citizens, there are several possible benefits of participating in the depopulation program, such as:
- Entering the private property insurance market
- Lowered risk of premium assessments
- More comprehensive coverage
- Lower premiums
However, these benefits are only possible, not guaranteed. Consider that:
- Those taken out of Citizens may still have to pay premium assessments
- Policies may not provide more comprehensive coverage than Citizens’ policies
- Premiums may be higher
Approval by the Office of Insurance Regulation does not necessarily mean that the takeout company has the financial strength to provide the security you expect from your insurance company.
Given the complexity and significance of making the best choice, it is important to consult with a licensed and experienced insurance agent. Upon receiving notice that your policy has been selected for assumption by a takeout company, contact your insurance agent to discuss your options.
At Setnor Byer Insurance & Risk, we are committed to guiding you through the process of deciding whether having your property insurance policy assumed by a takeout company is the best option for you. If you have any questions, please contact us.