Florida’s Insurance Crisis: Homeowners Face Uncertainty as Largest Provider Cuts Policies
Florida’s homeowners are facing a daunting reality as Citizens Property Insurance Corporation, the state’s largest insurance provider, continues to shed policies at an alarming rate. This move has left many residents feeling trapped, with few options and rising premiums.
A Shift to Private Insurers
Earlier this year, Florida regulators approved plans to transfer policies from Citizens to private insurers, a move aimed at reducing the state’s reliance on the insurer of last resort. However, Citizens now holds over 1.26 million policies, a significant increase from 421,000 in 2019, as private insurers have steadily exited the state or raised rates due to heavy losses.
The Consequences of Depopulation
Citizens’ Depopulation Program is designed to match policyholders with private insurers willing to take over these policies. While the program aims to provide coverage in the private market, homeowners are bracing for significant premium hikes. Many are worried that their homes, their main assets, may ultimately be at risk.
Rising Premiums and Decreasing Coverage
Homeowners like Henry Williams and George Matter are feeling the pinch. Williams expressed concern about affording the new premiums, while Matter’s new policy with Florida Peninsula will cost more for less coverage. The average insurance premium for a $300,000 home in Florida has reached $5,527, well above the national average.
Retirees Bear the Brunt
For retirees relying on fixed incomes, the high cost of insurance is particularly concerning. Williams shared his concerns about mounting premiums and the potential for property values to decrease, saying “I don’t sleep at night.”
Private Insurers See Opportunity
Private insurance companies participating in the program view the transition as a sign of improvement in Florida’s volatile insurance market. Citizens spokesperson Michael Peltier stated that 369,768 Citizens policies have been assumed by private companies as part of the depopulation initiative.
Homeowners Left in the Dark
Despite the program’s intentions, many homeowners feel uncertain about their coverage. Largo resident Angela Irizarry expressed frustration, noting that they have “no say” in the company they are shifted to, leaving many unsure about what their coverage will ultimately entail.
A Difficult Decision Ahead
For some, remaining with Citizens may not be an option if the new premium increase falls within 20 percent of their current rate. As Florida’s insurance crisis continues to unfold, homeowners are left to navigate the uncertainty, searching for affordable coverage in a rapidly changing market.
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