Property insurance customers of the state-backed insurance company Citizens are getting a pleasant surprise as some learn there is a decrease in property insurance premiums if they get the chance to switch to a new insurance company.
This decrease comes as Citizens offloaded roughly 300,000 policies two weeks ago. Now, state regulators just approved six more private insurance companies to take as many an additional 153,000 policies away from Citizens Property Insurance.
This is another move to depopulate Citizens, which carries more than 1.4 million policies.
Citizens offloaded roughly 300,000 policies two weeks ago.
According to Brightway Insurance Agent Matt Carlucci Jr., this by no means indicates Florida’s property insurance crisis is over, but instead, he said it’s a sign that the state is headed in the right direction.
“I’ve had two people this week, who they’re going to renew next year with a company whose price is almost $300 less than Citizens. There’s a percentage of people who are going to get a lower price policy, and they don’t have to do anything to get it,” Carlucci said.
Carlucci said more private insurance companies flooding the market is resulting in more competition between them to offer Florida homeowners the lowest rates. He added Citizens’ customers need to be on the lookout for an offer letter in the mail, which gives homeowners the option to switch from Citizens to a private company.
“Lately, a lot of private market companies have become more aggressive. And whenever you see that, because insurance is cyclical, so once the private market becomes aggressive, eventually prices are going to fall,” Carlucci said.
However, not everyone is getting good news in the mail. We asked News4JAX Insiders if they’ve received their offer letter from Citizens.
Clark wrote: “Love to be off Citizens, but the new policy costs 55% more, and little information is provided. So no thank you. This was poorly handled by Citizens.”
Tina wrote: “Not happy as my rates are going up almost $1000 a year. It’s not a “choice” to switch. We just bought our house a month ago. Crazy.”
Jeff wrote: “I’m glad to see citizens offloading many policy holders. As a taxpayer, I have grown weary of helping subsidize premiums of others.”
Carlucci said so far this hurricane season, the state of Florida, for the most part, has dodged a bullet.
As hurricane season comes to an end, agents said the insurance outlook could improve even more.
“I do think we’re heading in the right direction,” Carlucci said. “I do think we have some, you know, we still have a little way to go.”
If you receive an offer letter from a private company that quotes you 20% more of what you’re currently paying, you can reject that offer and stick with Citizens. If it’s less than 20%, you have to take the deal.
This was all part of new legislation passed during a special session.