Relief Has Arrived for the Florida Insurance Market

Competition in the Market Begins to Normalize Pricing

State regulators have now approved six additional private insurance companies to take on an extra 153,000 policies from Citizens Property Insurance. Policyholders with property insurance through the state-backed insurer Citizens are in for a pleasant surprise as some discover a decrease in their property insurance premiums when switching to a new insurance provider. This decrease follows Citizens' recent move to offload approximately 300,000 policies just two weeks ago.

This latest initiative is part of a broader strategy to reduce Citizens' policy count, which currently stands at more than 1.4 million policies. The previous offloading of 300,000 policies marked the beginning of this effort.

Local Insurance Agent Lends Insight

According to Brightway Insurance Agent Matt Carlucci Jr. in an interview with News4Jax, while this development doesn't signal the end of Florida's property insurance challenges, it is an encouraging indication that the state is moving in the right direction.

Carlucci shared, "I've had two clients this week who are planning to renew next year with a company offering premiums nearly $300 lower than what Citizens is currently charging. Some policyholders will see a significant reduction in their premiums without having to take any action."

Carlucci emphasized that the growing presence of private insurance companies in the market has intensified competition, leading to more competitive rates for Florida homeowners. He advised Citizens' policyholders to watch for offer letters arriving in their mailboxes, which will provide them with the opportunity to switch from Citizens to a private insurance provider.

"In recent times, numerous private market insurers have become more competitive," Carlucci explained. "This increased competition will eventually result in lower insurance prices since the insurance industry operates in cycles."

How Does this Apply to You?

Under the new legislation passed during a special session, if you receive an offer letter from a private insurer quoting a premium that is 20% higher than your current rate, you have the option to decline the offer and remain with Citizens. However, if the quoted premium is less than 20% of what you are currently paying, you are required to accept the offer.

These developments mark a significant shift in the Florida property insurance landscape and offer hope to policyholders seeking more affordable coverage options.