HIM DIZZY. HE ALSO DENIES CLAIMING HE WAS THE POLICE CHIEF. YOU MAY WANT TO KEEP A CLOSE EYE YOUR MAILBOX THIS MONTH. HUNDREDS OF THOUSANDS OF PEOPLE IN FLORIDA GET A LETTER TELLING THEM THEY ARE GETTING A NEW HOME INSURANCE COMPANY. FLORIDA’S LARGEST ENSURE THE STATE-BACKED CITIZENS INSURANCE COMPANY ANNOUNCED IT IS SHUTTING A BIG CHUNK OF ITS POLICIES. >> NBC TWO’S DAVE ELIAS WHO CLOSELY FOLLOWS THE INSURANCE MARKET FOR US IS EXPLAINING WHY AND WHAT IT MEANS FOR ALL OF US IN FLORIDA. >> WELL, THAT QUESTION MAY NOT BE. ARE YOU READY FOR A HURRICANE, BUT RATHER ARE YOU READY FOR A NEW INSURANCE COMPANY? SOME CITIZENS CUSTOMERS? WE’LL HAVE THAT TO DEAL WITH IN THE COMING MONTHS THAT THERE WON’T BE A SECOND WHERE YOU WILL BE WITHOUT COVERAGE. CITIZEN SPOKESMAN MICHAEL PELLETIER ONE EARLIER THIS YEAR THAT THE COMPANY OF LAST RESORT WAS SHUTTING POLICIES. TYPICALLY WHAT HAPPENS IS COMPANIES EXPRESSED INTEREST IN TAKING CITIZENS POLICIES OUT TOWARDS THE END OF THE HURRICANE SEASON WHEN THE RISK OF HURRICANES. >> GETS LESS. THE COMPANY HAS MORE THAN 1.2 MILLION POLICIES IN THEIR CEO, TIM CEREAL, ONCE THAT NUMBER WELL BELOW 1 MILLION AS THE MARKET GETS HEALTHIER, WE SHOULD SHRINK THE OFFICE OF INSURANCE REGULATION HAS APPROVE CITIZENS GETTING RID OF 400,000 POLICIES BY OCTOBER BUT WERE COULD COME BY THE END OF THE YEAR. THE HOMEOWNERS ARE RELATIVELY SAFE IN THE SHORT TERM BECAUSE THE ACTUAL CHANGEOVER IS NOT GOING TO HAPPEN UNTIL THE END OF THIS YEAR OR EVEN QUARTER ONE OF 2025 MANATEE INSURANCE EXCHANGE SLIDE AND AMERICAN INTEGRITY. >> ARE THE TOP 3 COMPANIES TAKING A COMBINED 218,000 POLICIES. HISTORICALLY, WE’VE HAD A FAIR PORTION OF OUR CITIZENS. CLIENTS GET TARGETED FOR THIS TAKEOUT AS CITIZENS POLICYHOLDERS FACE A 14% RATE HIKE. FORT MYERS INSURANCE AGENT DOUG NELONS PREDICTS MANY OF U.S. CUSTOMERS WILL GET TAKE OUT NOTICES. CAN THEY EXPECT TO PAY MORE? I’M CAUTIOUSLY OPTIMISTIC THAT WITH ALL OF THE 9 CARRIERS THAT ARE COMPETING FOR THIS BUSINESS. >> A LOT OF HOMEOWNERS COULD SEE SIMILAR IF NOT LOWER PREMIUMS VERSUS CITIZENS WITH THEIR 14% RATE INCREASE BAKED AS CUSTOMERS NOW WATCH THEIR MAILBOXES TO SEE IF THEY’RE CHOSEN. NOW CITIZENS DOESN’T EXPECT TO START SENDING THESE LETTERS OUT UNTIL SOMETIME IN AUGUST. BUT THE GOOD NEWS HERE IS YOU ARE SAFE THROUGH THIS HURRICANE SEASON
Florida’s Citizens Insurance shedding thousands of policies
Updated: 6:34 PM EDT Aug 7, 2024
You may want to keep a close eye on your mailbox this month. Hundreds of thousands of Florida residents are expected to receive a letter warning they’ll be getting a new home insurance company.The state’s largest insurer, Citizens, announced it is shedding a big chunk of its policies.So, the question may not be, are you ready for a hurricane as the season ramps up, but rather, are you ready for a new insurance company? Some Citizens Property Insurance Corporation customers will have to deal with that in the coming months. Citizens spokesman Michael Peltier warned more take-out offers would be coming late this year and stressed that policyholders would not be a second without coverage.“Typically, what happens is companies will express an interest in taking Citizens policies out toward the end of the hurricane season when the risk of hurricanes gets less,” Peltier previously stated.The company has more than 1.2 million policies. Their CEO, Tim Cerio, has previously stated he wants that number well under 1 million.“As the market gets healthier, we should shrink,” Cerio has stated.The Office of Insurance Regulation has approved that Citizens may shed up to 400,000 policies by October, but more could come by the end of the year.Doug Nellans is a Fort Myers insurance agent with The Insurancenter and said homeowners are relatively safe in the short term because the actual changeover is not going to happen until the end of this year or quarter one of 2025. Manatee Insurance Exchange, Slide Insurance and American Integrity Insurance Groups are the top three companies taking a combined 218,000 policies. A total of nine companies are expected to each take a chunk of Citizens customers. Manatee Insurance Exchange: 78,000 Slide: 75,000 American Integrity: 65,880 Southern Oak: 50,000 Orion180 Select: 26,128 Florida Peninsula: 35,000 Monarch National: 30,000 Homeowners Choice: 25,000 TypTap: 25,000“Historically, we’ve had a fair portion of our Citizens clients get targeted for this take out,” Nellans stated.As Citizens policyholders face a 14% rate hike, Nellans predicted many of his customers will likely get takeout notices from the company.But when asked if he expected those clients to pay more for coverage, Nellans said he was cautiously optimistic they would not.“With all of the nine carriers that are competing for this business, a lot of homeowners could see similar, if not lower, premiums with Citizens 14% increase baked in,” Nellans said.Citizens isn’t expected to start sending out the letters until later in August, but the good news is policyholders are safe through this hurricane season.
You may want to keep a close eye on your mailbox this month. Hundreds of thousands of Florida residents are expected to receive a letter warning they’ll be getting a new home insurance company.
The state’s largest insurer, Citizens, announced it is shedding a big chunk of its policies.
So, the question may not be, are you ready for a hurricane as the season ramps up, but rather, are you ready for a new insurance company? Some Citizens Property Insurance Corporation customers will have to deal with that in the coming months.
Citizens spokesman Michael Peltier warned more take-out offers would be coming late this year and stressed that policyholders would not be a second without coverage.
“Typically, what happens is companies will express an interest in taking Citizens policies out toward the end of the hurricane season when the risk of hurricanes gets less,” Peltier previously stated.
The company has more than 1.2 million policies. Their CEO, Tim Cerio, has previously stated he wants that number well under 1 million.
“As the market gets healthier, we should shrink,” Cerio has stated.
The Office of Insurance Regulation has approved that Citizens may shed up to 400,000 policies by October, but more could come by the end of the year.
Doug Nellans is a Fort Myers insurance agent with The Insurancenter and said homeowners are relatively safe in the short term because the actual changeover is not going to happen until the end of this year or quarter one of 2025.
Manatee Insurance Exchange, Slide Insurance and American Integrity Insurance Groups are the top three companies taking a combined 218,000 policies. A total of nine companies are expected to each take a chunk of Citizens customers.
- Manatee Insurance Exchange: 78,000
- Slide: 75,000
- American Integrity: 65,880
- Southern Oak: 50,000
- Orion180 Select: 26,128
- Florida Peninsula: 35,000
- Monarch National: 30,000
- Homeowners Choice: 25,000
- TypTap: 25,000
“Historically, we’ve had a fair portion of our Citizens clients get targeted for this take out,” Nellans stated.
As Citizens policyholders face a 14% rate hike, Nellans predicted many of his customers will likely get takeout notices from the company.
But when asked if he expected those clients to pay more for coverage, Nellans said he was cautiously optimistic they would not.
“With all of the nine carriers that are competing for this business, a lot of homeowners could see similar, if not lower, premiums with Citizens 14% increase baked in,” Nellans said.
Citizens isn’t expected to start sending out the letters until later in August, but the good news is policyholders are safe through this hurricane season.
