Florida – Property insurance customers of the state-backed insurance company Citizens are getting a pleasant surprise as some learn that there is a reduction in property insurance premiums if they have the opportunity to switch to a new insurance company.
This decrease comes at a time when citizens unloaded nearly 300,000 documents two weeks ago. Now, state regulators have just approved six more private insurers to take up to 153,000 more policies from Citizens Property Insurance.
This is another step to evacuate citizens, which holds more than 1.4 million insurance policies.
Citizens unloaded nearly 300,000 insurance policies two weeks ago.
According to Brightway Insurance Agent Matt Carlucci Jr., this in no way indicates that Florida’s property insurance crisis is over, but instead, he said it’s a sign that the state is headed in the right direction.
Related | Citizens Property Insurance policyholders get letters in the mail asking them to switch
“I had two people this week who are renewing their contract next year with a company that’s about $300 less than Citizens. There’s a percentage of people who will get a lower-rate policy, and they don’t have to do anything to get it,” Carlucci said.
Carlucci said that more private insurance companies flooding the market leads to more competition among them to provide Florida homeowners with the lowest rates. He added that Citizens customers need to look for an offer letter in the mail, which gives homeowners the option of switching from Citizens to a private company.
“Recently, a lot of private market companies have become more aggressive. The more you see it, because insurance is cyclical, so once the private market gets aggressive, prices will eventually come down,” Carlucci said.
However, not everyone gets good news in the mail. We asked News4JAX insiders if they have received their offer letter from Nationals.
Clark wrote: “I would love to be apart of the Citizens, but the new policy costs 55% more, and little information is provided. So no thank you. This has been handled poorly by the Citizens.”
Tina wrote: “I’m not happy that my rates are going up about $1,000 a year. It’s not an ‘option’ to switch. We just bought our house a month ago. Crazy.”
Jeff wrote: “I’m glad to see Citizens getting rid of so many policy holders. As a taxpayer, I’m tired of helping subsidize other people’s premiums.
More | 7 insurance companies are approved to take Citizens’ policies
So far this hurricane season, Florida has mostly dodged a bullet, Carlucci said.
With hurricane season over, agents said the insurance outlook could improve further.
“I think we are moving in the right direction,” Carlucci said. “I think we have some, you know, we still have a long way to go.”
If you receive an offer letter from a private company offering you 20% more than what you’re currently paying, you can decline that offer and stick with Citizens. If it is less than 20%, you should take the trade.
This was all part of new legislation passed during a special session.
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