Two private insurance companies have been given the greenlight to “take out” up to 50,000 residential policies from Florida’s insurer of last resort, Citizens Property Insurance.
Florida’s Office of Insurance Regulation gave permission to Safepoint Insurance in Temple Terrace and Southern Oak Insurance in Ponte Vedra Beach to transfer policies from Citizens starting from October 17. The approvals are part of the state’s ongoing efforts to depopulate Citizens.
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Sun Sentinel reported that Safepoint has been approved to remove up to 20,000 personal residential policies, 10,000 multi-peril coastal account policies, and 5,000 wind-only policies.
Southern Oak was cleared to remove up to 5,000 personal residential policies, 2,500 multi-peril coastal account policies, and 7,500 wind-only policies.
The two companies are among a select few that continue to help in the depopulation of the state-run insurer. Earlier this year, both companies took in policies from Citizens – Safepoint was approved to remove 16,825 policies and assumed 9,051, while Southern Oak was approved to remove 45,000 and assumed 2,276.
Customers that have been selected for depopulation will receive a form from Citizens explaining coverage options, differences in coverage among various private insurers, and estimated renewal costs. The same form will also offer instructions on how to opt out of the take-out and remain with Citizens.
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