Florida homeowners are facing difficult choices as the state’s largest insurance provider, Citizens Property Insurance Corporation, continues to cut policies, a move that many say leaves them between a rock and a hard place.
Earlier this year, Florida regulators approved plans to move policies from Citizens to private insurers, created by the Florida Legislature in 2002 as an insurer of last resort. However, Citizens now holds over 1.26 million policies, a surge from about 421,000 in 2019, as private insurers have steadily exited the state or raised rates due to heavy losses.
Don’t Miss:
Citizens’ Depopulation Program, as required by Florida law, is designed to match policyholders with private insurers willing to take over these policies. “Citizens is committed to helping its policyholders find coverage in the private market,” reads a statement on its website.
However, homeowners are bracing for significant premium hikes with these new insurers. “I can’t afford to leave and I can’t afford to stay,” one retiree, Henry Williams, told Newsweek, mentioning that he worries his home, his main asset, may ultimately be at risk.
Another resident, George Matter, expressed frustration at being moved to a new policy costing more for less coverage. Matter’s new premium with Florida Peninsula will jump by $550, yet his coverage will drop.
The high cost of insurance is something Floridians are feeling across the board. Bankrate reports that the average insurance premium for a $300,000 home in Florida reached $5,527 in October 2024, well above the national average of $2,285 and neighboring states like Georgia and Alabama.
Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — you can become an investor for $0.80 per share today.
Costs are particularly concerning for retirees who rely on fixed incomes. “I don’t sleep at night,” Williams shared, noting the strain of mounting premiums and the potential for property values to decrease.
Private insurance companies in the program see the transition as a sign of improvement in Florida’s volatile insurance market. Citizens spokesperson Michael Peltier said in a statement to Newsweek that 369,768 Citizens policies have been assumed by private companies as part of the depopulation initiative.
He explained that Citizens works with insurers interested in specific policies, such as those for newer homes or roofs or those located in certain areas. Private insurers who participate then offer policies with premiums comparable to or even below Citizens’ rates.
Still, not all homeowners feel comfortable with the change. Largo resident Angela Irizarry expressed her frustration, noting that they have “no say” in the company they are shifted to, leaving many uncertain about what their coverage will ultimately entail.
While some might consider remaining with Citizens, it is not always an option if the new premium increase falls within 20 percent of their current rate.
Read Next:
Up Next: Transform your trading with Benzinga Edge’s one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today’s competitive market.
Get the latest stock analysis from Benzinga?
This article Florida’s Largest Insurer Cuts Policies, Leaving Residents In Limbo — Here’s Why Policyholders Are Stuck And What This Means For Homeowners originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
EMEA Tribune is not involved in this news article, it is taken from our partners and or from the News Agencies. Copyright and Credit go to the News Agencies, email news@emeatribune.com Follow our WhatsApp verified Channel
