In recent blogs, we have described the process of Citizens’ depopulation. Citizens is selling some of their property insurance policies to private companies in an attempt to reduce their size. In many cases, Citizens is not actually selling these policies, but rather loans to private insurers from Citizens’ $6 billion surplus. These loans could be partially forgiven if a major hurricane strikes Florida.
According to a recent Tampa Bay Times article, all of the companies taking over these policies are less than eight years old; none of the insurers is rated by A.M. Best, the prime ratings agency; and Weiss Ratings give four of the five companies a D rating. Florida homeowners may remember Poe Financial Group, Magnolia Insurance, and HomeWise Insurance as well. All three of these companies took on Citizens policies and ultimately went out of business.
It remains to be seen how this depopulation will affect claims handling practices for sinkhole fire, water and storm claims. Contact Robert Sparks Attorneys to discuss your insurance claim.