The state wants to keep numbers down because it could leave taxpayers on the hook after a major storm hits. Still, the CEO expects 750K policies by the end of the year.
TALLAHASSEE, Fla. – State-backed Citizens Property Insurance Corp. had nearly 610,000 policies as of May 31, according to updated information posted on its website. Citizens – the “insurer of last resort” – aims to cover only Florida homeowners who can’t get coverage elsewhere, but it generally covers less than a private insurer, and taxpayers may be charged if a hurricane causes major damage to the state.
Florida lawmakers try to minimize the number of homeowners under Citizens’ umbrella for that reason, but it’s not easy. Gov. Ron DeSantis recently signed a bill (SB 76) designed to help bolster private insurers and allow larger rate increases for Citizens customers. However, it will take time to see how well it works.
On May 31, Citizens had 609,805 policies – an increase from 589,041 policies on April 30.
With private insurers dropping customers and seeking double-digit rate increases, Citizens’ policy count has surged in 2020 and 2021. As an example, it had 463,247 policies on May 31, 2020, or nearly 32% growth during the past year, according to the website.
President and CEO Barry Gilway has said Citizens, which was created as an insurer of last resort, likely will have about 750,000 policies by the end of this year.
Source: News Service of Florida
