Thousands of Florida Citizens Property Insurance customers are being forced out of the state-run insurer and into the private market, with too little time to respond.
Citizens is the insurer of last resort for Florida property owners who cannot find coverage in the private market. However, in recent years, the number of Citizens policies have soared, due to rising insurance rates and a shrinking private market.
In response, the Florida Legislature passed a law in 2022 that requires Citizens to “depopulate” its rolls by 500,000 policies by the end of 2023.
Citizens has begun the depopulation process by notifying customers that they are being selected to be dropped from the insurer’s rolls. These customers have two options: stay with Citizens, but pay higher premiums, or switch to a private insurer.
However, many customers are complaining that they are not being given enough time to make a decision. Customers have just 30 days to respond to Citizens’ notification letter, or they will be automatically switched to a private insurer.
The problem is that many customers are not aware that they are being dropped from Citizens. The insurer’s notification letters are bland and uninformative, and many customers are not reading them carefully.
As a result, thousands of customers are likely to be automatically switched to private insurers without their knowledge or consent. This could lead to significant financial hardship for these customers, as private insurance rates are often much higher than Citizens rates.
If you are a Florida Citizens Property Insurance customer, please read your notification letter carefully. If you do not want to be switched to a private insurer, you must respond to Citizens within 30 days.
If you have a pending property insurance claim that has been underpaid or denied, Insurance Litigation Group (ILG) can help. Our attorneys can help you understand your rights and options and can advocate for you on your behalf.