The Florida Office of Insurance Regulation has approved the removal of up to 30,000 personal residential policies and 50 commercial residential polices from Citizens Property Insurance Corporation by the following two companies:
- Heritage Property & Casualty Insurance Company – approved to remove up to 20,000 personal residential policies (17,500 Personal Lines Account and 2,500 Coastal Account) and up to 50 commercial residential policies (40 Commercial Lines Account and 10 Coastal Account)
- Southern Oak Insurance Company – approved to remove up to 10,000 personal residential policies (8,500 Personal Lines Account and 1,500 Coastal Account)
Citizens’ Personal Lines and Commercial Lines Accounts are mostly non-coastal properties and the Coastal Account are coastal properties.
The take-out periods are July 21, 2015 for personal residential impacting both the Personal Lines/Coastal Account policies and July 14, 2015 for commercial residential impacting both the Coastal Lines/Coastal Account policies.
This is part of the state’s ongoing depopulation effort to reduce the number of policies in the state-created Citizens and transfer them to the private insurance market. Today’s announcement brings the total number of policies approved for take-outs in 2015 to 632,286. To date, 110,529 policies have been removed from Citizens this year.
By statute, policyholders may choose to remain covered by Citizens during take-out offers; however, they may be at risk of higher assessments.