TALLAHASSEE, Fla. – April 30, 2014 – The Florida Office of Insurance Regulation (FOIR) approved the removal of up to 10,000 multi-peril personal residential policies from Citizens Property Insurance Corp. to Southern Oak Insurance Company.
The approval is part of an ongoing process to reduce the number of policies held by state-owned Citizens by transferring them into the private insurance market.
According to FOIR, Southern Oak requested 8,500 policies from Citizen's Personal Lines Account (non-coastal properties) and 1,500 from the Coastal Account (coastal properties) for the July 15, 2014 take-out period.
So far this year, Florida has approved 344,341 for take-outs.
Policies approved for removal by FOIR are not all necessarily eliminated from Citizens inventory, however. A policyholder has a choice to be transferred to the take-out company or remain with Citizens. Policyholders who choose to transfer have a lower risk of being charged higher amounts for Citizens assessments.
To date, 106,380 policies have been removed from Citizens.
© 2014 Florida Realtors®
Reprinted with permission. Florida Realtors®. All rights reserved.