In response to surging demand, Florida’s state-backed property insurer, Citizens Property Insurance Corporation, is preparing to transfer hundreds of thousands of policies to private insurers later this month.
Earlier this year, Florida regulators approved measures allowing private insurance companies to absorb policies from Citizens, the largest insurer in the state. Established by the Florida Legislature in 2002, Citizens was designed to provide coverage to property owners unable to secure insurance in the private market.
On August 2, Florida’s Insurance Commissioner Michael Yaworsky signed an order permitting 10 private insurers to take over 413,808 policies from Citizens starting in late October. Just weeks later, another 235,035 policies were authorized for removal, with transfers expected to begin in November, according to a report from Florida Politics.
Citizens’ policy count has surged dramatically in recent years as private insurers exited the market, citing financial losses from claims and litigation. As of August 2024, Citizens had 1,250,791 active policies, a significant increase from the 420,366 policies in force five years ago.
In a statement on its website, Citizens emphasized its commitment to helping policyholders transition to private insurance. “As required by Florida law, Citizens’ Depopulation Program matches policyholders with private insurers willing to take over their policies and offer coverage,” the statement read.
The depopulation move follows the devastation caused by Hurricane Helene, which struck Florida and other eastern states in late September. The storm, now one of the deadliest in U.S. history, has claimed over 200 lives, with hundreds still missing.
Data from the Florida Office of Insurance Regulation revealed that 84,400 claims have been filed in the aftermath of Hurricane Helene, including 42,219 for residential properties. Of these, 1,340 claims have been resolved with payments, while 2,712 were closed without payment. Over 38,000 claims remain unresolved.
Florida homeowners are grappling with some of the highest insurance premiums in the nation. According to Bankrate, the average annual cost of insuring a $300,000 home in Florida stands at $5,527, more than double the rates for similar homes in neighboring states like Georgia ($2,071) and Alabama ($2,745).
The average Florida premium is $3,242 higher than the national average of $2,285, with some areas experiencing premiums exceeding $8,000. Florida’s average home insurance cost is second only to Nebraska, where premiums on a $300,000 home average $5,652 annually.
Citizens has been contacted for verification of the updated policy transfer figures, though a response is pending due to the inquiry being made outside of normal business hours.
