Citizens Property Insurance reaches deadline, forcing customers to respond

Reporter: Asha Patel Writer: Nicholas Karsen
Published: Updated:

People insured with Citizens Insurance will have a decision to make: stick with their current coverage with Citizens or transfer to a private insurer.

More than 300,000 Floridians received a letter through their mail that offered property insurance coverage from one or more private companies.

As more private insurance companies leave or refuse to write new policies for Floridians, Citizens has become the last resort but not the ideal choice.

The problem lies with how the cost of insurance is rising. Many people cannot afford to transfer coverage from Citizens to another insurer.

Being overwhelmed with a record number of policies, Citizens is looking to sell off some of its policyholders and reduce their exposure.

As the largest home insurer in the state with approximately 1.3 million customers, the letter sent will require a response by the end of Tuesday regarding whether clients will continue their coverage or move to another insurer.

Clients who have a premium offer within 20% of the Citizens premium must leave the insurance carrier. If it is more than 20% of the premium, they can stay as part of Citizens.

Insurance companies are recommending customers call their insurance agent to discuss all the best options available.

If Citizens decides to implement the hurricane tax. Due to the influx of severe hurricanes, premiums can increase to as high as 45%.

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