More than 32,000 Florida homeowners insurance policies were returned to the private market in June, 2005, officials with Citizens Property Insurance Corporation announced this week. The added policies bring this year’s total to nearly 250,000.
“Even with early storm activity, we continue to have great success in placing many of our policyholders with new insurance carriers,” said Bob Ricker, Citizens’ executive director.
Policyholders with correct policy information receive discounted premiums under their new insurer, as Citizens is required by Florida law to charge the highest rates in each county. In addition, by returning policies to the private market, Citizens reduces the potential burden on all Florida homeowners in the event a major storm strikes Florida. Under Florida law, excess losses to Citizens must be passed on to private insurance carriers and their policyholders.
Nearly 10,000 of Citizens’ wind-only coastal policies were removed following Ricker’s earlier call for more high risk policies to be removed.
The wind only policies were taken on by Miami-based Florida Peninsula. Additional companies participating in this year’s policy returns include Argus Fire & Casualty, Atlantic Preferred, First Home, Gulfstream, Security First, Southern Fidelity, Southern Oak and United Property and Casualty Insurance.
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