Florida Take Out Insurance Companies – What You Need to Know
Citizens Property Insurance Corporation is Florida’s home insurance company of last resort.
That is, it is supposed to be the final option that you as a Florida homeowner would turn to for coverage if you are unable to find private Florida home insurance.
That’s good news if you can’t find a Florida home insurance company to cover your home, but can create significant problems for Citizens Insurance Florida as the dollar magnitude of the risk they are responsible for becomes too high.
Why? Because Citizens has had difficulty charging enough premium to cover the risks that they are accepting. That can lead to severe shortage of cash after a Florida hurricane - shortages that they have to cover by reaching out to the bond markets and/or by imposing special assessments on Florida homeowners.
So, it is good public policy to try to encourance Florida home insurance companies to take or assume policies out of Citizens Property Insurance Corporation. This allows Citizens to send some of its risk back to the private market.
The challenge for you as a Florida homeowner on the receiving end of an offer from a Florida take out home insurance company is that there are many factors that make it difficult for you to decide whether to accept the offer:
- The company might offer a similar or lower price than Citizens Property Insurance but over time might raise rates significantly.
- Issues with the age of your home, roof type, construction materials, and hurricane mitigation features might trigger the need for a Florida home insurance inspection – something that might subject you to a massive rate increase.
- The company wanting to take your Florida property insurance policy might be brand new, thinly capitalized, with no experience responding to and paying Florida hurricane claims.
So the bottom line for you when trying to evaluate whether you should accept a Florida home insurance take out offer is that you can’t do enough due dilligence on the company support your decision. And this may also be a good time for you to see if there is another private Florida home insurance company that might give you additonal options for getting out of Citizens Insurance Florida.
If you want to see if there are other Florida home insurance companies writing new business, check out the Florida home insurance buyers guide located at:
This guide helps you find, screen, and contact Florida homeowners insurance companies still writing new business in your Florida county.
When you subscribe to the guide, you will quickly find out which Florida home insurance companies are interested in covering your home. And you will be able to find out this information without having to contact multiple Florida home insurance agents.
If you are considering a Florida home insurance company take out offer, check out the home insurance buyers guide today.
It is the best way to get the most Florida home insurance quotes on your home.