State looks to new companies to insure Floridians

Sunday, November 23, 2008

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Officials are trying to reduce the size of the state's insurer of last resort. Watch the story Watch Video

TALLAHASSEE (Bay News 9) -- A battle over property insurance is unfolding in Tallahassee.

According to Bay News 9's partner paper, the St. Petersburg Times, elected officials are trying to keep rates in check while reducing the size of Citizens Property Insurance, the state's insurer of last resort.

Florida has approved more than a dozen new insurers - called "take-out insurers" - to take about 400,000 policies out of Citizens this year. However, the state has been pushing the companies to write so many policies that there are questions about whether the insurers have enough surplus to back them.

Some tips for evaluating the companies include checking out their most recent financial statement, asking if the company uses captive or contract agents and finding out if the insurer will offer you discounts if you make upgrades to your house.

Once a property owner receives a notification that they will be moved to a take-out insurer, they have 30 days to respond if they wish to stay with Citizens instead.

Policyholders who do nothing will automatically be moved to the take-out insurer.