GULFPORT, Fla. — The clock ticking is for more than 300,000 Floridians who have Citizens Property Insurance.
Over the past few weeks, the state-backed insurer of last resort sent letters to policyholders with offers to switch to a private insurer. The deadline to respond is Tuesday, Oct. 10 and inaction could be costly for some.
Amid a ballooning number of policies and to limit their risk, Citizens is sending depopulation letters to a number of policyholders.
The offers vary, but if the offer from a private insurer will cost you 20% more, you are not required to accept it. You still have to select Citizens if that’s the case.
Jon Hamilton is one of hundreds of thousands of Citizens policyholders to get a letter.
“I had to laugh at the verbiage, where it tells me great news! You got an offer for private insurance and then you see the offer is for more than double," he said.
He is declining the offer and sticking with Citizens to insure his Gulfport home, where he was hoping to retire in a few years but the growing costs are making him think a little more about that.
“I’ve heard other people say it’s gotten too much, they’re selling. I’m not there yet, but it’s giving me cause for concern,” Hamilton explained. He still has until November to respond to his offer, part of the latest round of Floridians to get the letters.
“The success of the depop program is vital to the recovery of the insurance market in Florida and it's necessary to minimize exposure,” Citizens CEO Tim Cerio said during a recent meeting.
If your offer is less than a 20% cost increase, you will have to leave Citizens. Call your insurance agent and discuss all your options with them, but remember to act quickly.
You can also issue a response on the Citizens’ website.