The 19.5% decrease in policies over the course of 2024 so far reduces Citizens’ exposure by nearly $200 billion. (Credit: Tadamichi/Adobe Stock)
Citizens Property Insurance, Florida’s insurer of last resort, announced its policy count has fallen below 1 million for the first time in over two years. The insurer — which remains the state’s largest — has reduced its policy count by more than 428,000 since January, leaving it with 987,650 active policies at the end of November. They expect that policy count to drop closer to 900,000 by the end of 2024.
The 19.5% decrease in policies over the course of 2024 so far reduces Citizens’ exposure by nearly $200 billion, the insurer shared in a release.
Citizens credits this drop in policies to the success of the Citizens Depopulation Program, which works to transfer policies to private insurance companies that have been approved by the Office of Insurance Regulation.
Citizens notes that this shift toward more residents moving to private carriers demonstrates a renewed interest from insurers in entering or expanding their stake in the Florida market.
“These are encouraging signs as we continue our efforts to return to our role as Florida’s insurer of last resort,” Tim Cerio, Citizens’ president/CEO and executive director stated. “As Citizens shrinks, so does the risk of assessments on Floridians who are not Citizens policyholders. This should be welcome news to all.”
The news release from Citizens, which was shared on December 4, also addressed criticism the insurer has faced due to the number of claims denied this year in the aftermath of Hurricanes Debby, Helene and Milton.
The release states: “As the state’s insurer of last resort, Citizens historically has a rate of denial that is somewhat higher than the private market. Citizens insures policyholders in Florida’s most flood-prone regions. Citizens also encourages policyholders to file claims that would be denied because they are below the deductible thresholds, as this step is required to qualify for Federal Emergency Management Agency (FEMA) assistance.”
To date, they report denying 13.2% of all claims filed after determining there was no coverage under the insured’s policy, with this number including those turned down exclusively for flood damage, which is traditionally not covered under homeowners policies.
“Media accounts showing much higher percentages failed to account for claims that were accepted but did not reach deductible levels, claims that were withdrawn, duplicated, invalid or filed by policyholders who were no longer Citizens customers,” the release states.
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