Policyholders Must “Opt Out” of Take Out Offer to Remain With Citizens
Key West, Florida—November 4, 2016 Many of the over 18,000 Citizens Property Insurance policy holders in Monroe County may receive a letter from a private company offering to take over their policies. FIRM, the local non-profit insurance watchdog group, advises that there are some critical aspects of these offers beyond the quoted rates.
Policy holders that do not return an “opt-out” form to the takeout company within 30 days will be automatically transferred to the takeout company. Transferred policyholders will have an additional 30 days to request a return to Citizens. Once policy holders have been transferred to another company they will not be able to return to Citizens unless their new rates have risen more than 15% above Citizen’s rates.
Thanks to FIRM’s efforts Citizens has a legal 10% per year cap on its rate increases which private companies do not have. FIRM advises all policy holders who receive take out offers to speak with their insurance agents for further guidance. More information can also be found on the Citizens Property Insurance website.
Florida law requires that Citizens create programs to help return Citizens policies to the private market. The new companies must be approved by the Florida Office of Insurance Regulation. Approved takeout companies can offer to take over a Citizens policy at any time.
FIRM is a grassroots organization formed in 2006 to fight for fair property insurance rates for property owners and residents of Monroe County, Florida (Florida Keys). Through advocacy and community outreach, FIRM contributes to housing affordability and helps residents remain and prosper in our community. This information is not an offer to sell insurance. Information provided does not constitute professional advice. You should consult with a licensed insurance agent as to how these coverages pertain to your individual situation. If you have legal, tax or financial planning questions, you need to contact a qualified professional.
Contact: Mel Montagne, President, Fair Insurance Rates in Monroe, Inc.
422 Fleming Street, Room 5
Key West, FL 33040
305-294-3476
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