Its that time again when Citizens Property Insurance reduces the number of policies on their books by using the Take-Out program.
Every few years, private insurance companies in Florida go out of business or stop writing new business here.
This forces new policies to be written into Citizens and swells its exposure to claims.
Since Citizens is the “Market of Last Resort”, this puts the company at great risk of having the funds to pay Catastrophic losses.
So Citizens “depopulates” by arranging with private insurers to “Take-Out” policies from Citizens.
These Take-Out companies are all Florida-licensed companies approved by the Florida Office of Insurance Regulation.
If one of these Private companies offer you a policy, Citizens will start the Depopulation effort.
Citizens will mail you a letter offering you the opportunity to transfer your policy to a private company.
Do You Have to Accept a Take Out Offer from Citizens?
That depends.
Under Citizens rules, if the Take Out offer is less than 20% higher than Citizens rate, you must take it.
In this case, Citizens will non-renew your policy with the expectation that you will be insured by the Take-Out company.
If the Take-Out offer is more than 20% higher than the Citizens rate, you can stay with Citizens.
Citizens wants you to know that:
Private-market policyholders can be subject to paying a much lower assessment if Citizens does not have the resources to pay claims following a major hurricane or series of storms.
These surcharges can be as much as 45% of their premium in a single year.
For example, a Citizens policyholder with a $3000 premium could be required to pay an additional $1350 following a catastrophic storm-
Even if the policyholder suffered no individual loss.
What Must You Do If You Want to Accept Citizen’s Take-Out Offer?
Nothing, really.
Citizens will transfer your policy to the Take-Out Company at your upcoming renewal date.
You will need to inform them by a date on your letter – usually about two weeks before renewal.
If you get more than one Take-Out offer, Citizens will let you register the one you accept within the same time-frame.
If you don’t choose by the deadline, Citizens will choose one for you.
How to Opt Out of a Takeout Policy Online
STEP 1: On your takeout offer letter, locate your policy number, registration code and the takeout response URL.
These can be found on page 3. If you are having trouble accessing the takeout response URL, you can access it by clicking here.
STEP 2: Input your policy number, registration code and check the ‘I’m not a robot’ box. Then, click the blue box to the right:
STEP 3: Select ‘Citizens’ and click ‘Continue’:
STEP 4: Confirm whether you want them to email your choice to you. Then, initial the box near the bottom and press ‘Submit’:
If you would like your policy to be placed with the new company, follow these steps but choose the company besides Citizens. If you disregard this letter, Citizens will automatically place you with the new company.
When in Doubt, Contact Cronin Insurance.
Contact Cronin Insurance if you have any questions.
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