Florida’s “insurer of last resort,” Citizens Property Insurance, is seeing a significant shift in its policy landscape as five private insurance companies step in to take over nearly 200,000 policies. This move signifies both opportunities and potential challenges for homeowners in the Sunshine State, especially against the backdrop of a persistent home insurance crisis.
In a notable development, Florida’s Insurance Commissioner has recently signed orders approving proposals from five insurance companies to assume a substantial number of policies previously held by Citizens Property Insurance. The transition is set to begin as early as October, with these companies aiming to depopulate Citizens Property Insurance, which has traditionally served as the safety net for homeowners unable to secure coverage elsewhere.
Florida’s Insurance Commissioner recently signed orders approving proposals from five companies to assume thousands of Citizens’ policies as early as October. The good news is that this indicates that private insurance companies want more business in Florida, but there could be some bad news though for some Citizens policyholders, who will be asked to switch.
1.Slide Insurance Company
Slide Insurance Company offers flexible coverage tailored to the needs of Florida homeowners. As one of Florida’s largest homeowner’s insurtech companies, Slide serves over 170,000 policyholders. Despite being a relatively new name in the industry, Slide’s founders, with deep knowledge of the Florida market, established the company in 2021 in Tampa, FL. The leadership team boasts extensive experience, having participated in over 30 Citizens’ depopulation programs, providing policyholders with the assurance that they are in capable hands.
2.Safepoint Insurance Co
Safepoint Insurance Co, based in Tampa, FL, is a licensed Florida insurance company specializing in coastal regions of the United States. Safepoint collaborates with independent insurance agents to offer its products.
With a robust policyholder surplus and a strong local presence, Safepoint is well-equipped to safeguard homeowners’ most valuable assets. The company’s Management Team brings over a century of combined experience in the insurance industry, with over half of that time dedicated to serving Florida residents.
3.Southern Oak Insurance Co
Established in 2004, Southern Oak Insurance Company is a Florida-based insurance provider focused on residential property coverage. As a privately held company owned entirely by Florida residents, Southern Oak understands the significance of being there for policyholders when needed.
The company’s commitment to financial stability is evident through its impressive Financial Stability Rating of A, Exceptional, from Demotech, Inc. This rating underscores Southern Oak’s solid financial standing and ability to ensure policyholders’ peace of mind.
4.Florida Peninsula Co
Florida Peninsula has been serving and safeguarding Florida families for decades. Beyond addressing common issues like pipe breaks and theft, the company has played a crucial role in helping thousands of families recover from major hurricanes that have impacted the state since 2005.
Florida Peninsula specializes in Florida home insurance and is well-versed in the unique risks Floridians face. With a team of dedicated professionals, comprehensive coverage options, and extensive Florida-specific experience, Florida Peninsula is the ideal choice for homeowners and their families.
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5.Monarch National Insurance Company
Monarch National Insurance Company has taken pride in providing independent agents and Floridians with superior service and high-quality insurance products for over six years. The company aims to offer policyholders competitive coverages, efficient claims processing, and a sense of security and peace of mind. Monarch National is committed to building long-lasting customer relationships through a steadfast commitment to excellence.
Conclusion
The move by five Florida insurance companies to take over nearly 200,000 policies from Citizens Property Insurance is a significant development for the state’s insurance market. It reflects a growing appetite among private insurers to serve Florida homeowners and presents an opportunity for enhanced competition and choice.
While the transition may pose challenges for some policyholders, it also promises more innovative and tailored insurance solutions for the residents. As the process unfolds in the coming months, homeowners are encouraged to stay informed and take advantage of the evolving insurance landscape in Florida.
Frequently Asked Questions
Who is the owner of Citizens Insurance in Florida?
Citizens Insurance in Florida is a government entity established by the Florida Legislature in August 2002. It operates as a not-for-profit, tax-exempt organization and was created to provide property insurance to eligible property owners in Florida who cannot secure insurance coverage through the private market.
Which insurance company recently exited the Florida market?
Farmers Insurance has recently withdrawn from the Florida market. The company characterized this decision as a necessary business move aimed at effectively managing their exposure to risk. Farmers Insurance provided this information in a statement made to Fortune magzine.
