At the urging of politicians and the state regulators who control it, Citizens has been shifting hundreds of thousands of homeowners policies back into the private marketplace, mainly to small, untested Florida-based insurers.
Citizens’ goal is to shrink as much as possible as it focuses on its core mission: insuring those who cannot find adequate coverage on the open market. Going back into the private market through a “takeout” insurer is better for policyholders, the state-run company insists, because it’s less likely they’ll face big assessments to help pay claims after a major hurricane.
But what about those who want to stick with Citizens? Especially since it has much sounder fiscal strength than any of the private insurers taking out its policies, according to Florida ratings agency Weiss Ratings. Especially since customers could be at risk of paying higher rates to their new company while Citizens has been cutting rates. Especially since most of the takeout companies have no track record for handling hurricane claims.
Good luck…..Read more
EMERGE INSURANCE AGENCY
Source: Tampa Bay Times November 7, 2014