WEST PALM BEACH, Fla. – A number of Citizens Insurance policyholders are beginning to see offers of lower rates from private insurers.
It’s part of the state’s ongoing depopulation programme to reduce the number of people insured by the state-backed insurer of last resort.
But these lower rates come with a warning.
Robert Norberg of Arden Insurance in Lantana said that’s what’s happening in Palm Beach County with some of Citizens’ offers to switch to private insurance.
“Some of the offers that are coming in are much lower than what they’re seeing with Citizens,” Robert Norberg said. “But the caveat is that may not be the end game when they get their renewal.”
Norberg explained that the assumption letters and offers may not hold up as other factors continue to force insurance rates up.
“A lot of them are saying, ‘Hey, here’s our rate today. This is what we’re offering,'” Norberg said, “but by the time they get to that renewal, they may have gotten a new rate increase or two rate increases in that marketplace, and that consumer is then hit with this new rate now.
That new rate can be a lot higher, and Norberg said he’s seen that happen, driving some people right back to Citizens.
Norberg said any significant rate reductions are likely to be felt first along the Treasure Coast and in Florida counties further north.
“Anything north of the Palm Beach County line is going to see a drop in rates,” Norberg said. “Dade, Broward, Palm Beach (counties) are considered the hit zone. The biggest rates for all the windstorm coverage.”
State officials in Florida are still hopeful that six new companies will come to the state to do business – creating more competition and, ultimately, lower insurance costs for all Floridians.
