Three Insurers to Take Over More Than 135,000 Florida Property Insurance Policies From Citizens

Three insurance companies will assume more than 135,000 property insurance policies from Florida’s insurer of last resort, Citizens Property Insurance Corp., in June, as part of Citizens’ depopulation program.

The Florida insurance commissioner has approved plans for Mangrove Property Insurance Co., Patriot Select Property and Casualty Insurance Co., and Slide Insurance Co. to take on the policies. Mangrove will take up to 81,040 policies, Patriot Select will assume up to 39,500 policies, and Slide will take up to 15,000 policies this summer.

Florida law requires Citizens policyholders to accept new coverage offers from private insurers so long as the new insurance premium isn’t more than 20% more expensive than their existing rate with Citizens.

The exact number of policyholders who will have to accept a new offer isn’t yet clear.

Understanding Citizens’ depopulation efforts

Florida homeowners and insurance companies face unique property risks, largely due to the state’s higher risk for natural disasters. Florida homeowners pay $10,675 annually for coverage, while the average annual cost of coverage in the U.S. is $2,580, according to Insurify data.

Many insurance companies have increased premiums to account for Florida’s unique climate risks. Others have stopped issuing policies entirely or reduced coverage in certain areas of the state. As a result, many homeowners in Florida have had to turn to Citizens for coverage.

Citizens currently has around 847,500 property insurance policies in Florida. That’s down from 1.4 million policies in 2023.

Citizens exclusively writes coverage — meant to be temporary — for people who can’t find coverage in the private market. Per Florida law, Citizens works with private insurance companies to facilitate offers from private insurers to replace Citizens coverage.

What’s next? Packets are in the mail

Affected policyholders will receive a depopulation packet from Citizens that outlines the private insurance companies interested in taking over their insurance policies, along with coverage details and estimated premiums.

Though the Florida Office of Insurance Regulation has approved Mangrove, Patriot Select, and Slide to take over more than 135,000 policies from Citizens policyholders, the number who actually switch may be lower.

Citizens policyholders who receive a coverage offer that exceeds their existing premium by more than 20% have the option to remain with Citizens. That said, those with an offer that has an insurance premium less than 20% more expensive than their current premium don’t have the option to continue coverage through Citizens.

Policyholders will need to submit their coverage selections to Citizens — on their own or through an agent — by the date provided in the depopulation packet.

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