Many of the over 17,000 Citizens Property Insurance policy holders in Monroe County

may receive a letter from a private company offering to take over their policies.  There are some critical aspects of these offers beyond the quoted rates.

Policy holders who do not return an “opt-out” form to the takeout company within 30 days will be automatically transferred to the takeout company.  Transferred policyholders will have an additional 30 days to request a return to Citizens.  Once policy holders have been transferred to another company they will not be able to return to Citizens unless their new rates have risen more than 15% above Citizen’s rates.

Thanks to FIRM’s efforts Citizens has a legal 10% per year cap on its rate increases which private companies do not have.  FIRM advises all policy holders who receive takeout offers to speak with their insurance agents for further guidance.  More information can also be found on the Citizens Property Insurance website.

Florida law requires that Citizens create programs to help return Citizens policies to the private market. The new companies must be approved by the Florida Office of Insurance Regulation and are listed on their website. Approved takeout companies can offer to take over a Citizens policy at any time.

 

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