Florida law has some new regulations that would require the Citizens Board of Governors to create set programs that will assist Floridians to return their Citizens policies to the private market, thereby reducing the need for additional assessments. Currently the Citizens potential surcharge is 45%.

Insurance companies in the private market will now be afforded the opportunity to provide coverage to Citizens policyholders. Agents within the insurance companies, who choose to select some of these policyholders, will ensure that an opt-out letter is sent to the respective policyholders where they would have the option to either remain with Citizens or opt out within a 30 day period, if the opt out notice is not signed, the transfer to the new Florida Homeowners Carrier is automatic.

Insured policy holders need to weigh up their options and even contact the current agent of record for the homeowner insurance company in Florida to ensure that the Takeout is the best and most affordable option for them. Both, the agent and the insured will have their own point of view on the matter which will be discussed in this article.

Agent’s Are Able to Cover Insured’s Concerns over the Citizens Takeout Notice

Following below, we will touch on how your Florida agent would be able to answer the insured’s concerns over the recent Citizens Takeout Notice.

For one, Florida insurance agents recommend that you refer to the following resources to help you find out more information on the specific takeout process.

Best resources:

For details on the Citizens Property insurance Corporation policyholders are encouraged to visit

Another good site on Insurance regulations would be

 If you were wondering what the Takeout and Depopulation are all about

The Depopulation program would benefit everyone in Florida as it will prevent and reduce the probability of property insurance consumers being charged for assessments. The private insurance companies will offer coverage that will ensure a healthier insurance market in Florida. This further reduces the need to have all Florida properties assessed.

What an “assumption” is about?

This would mean that a private Florida insurance company would take on or assume any active Citizens policy, that is available for the takeout or depopulation program.

What is a “takeout company”

Any company who decides to participate in the Depopulation process are referred to as a takeout company.

 During the Depopulation process what kind of policies may be assumed?

Any personal residential policy that is active may be selected. Commercial non-residential policies and wind-only policies may not be assumed with the Takeout.

How are takeout companies approved, and what is the selection criteria?

The OIR decides which company may participate and which company may not. Any takeout company need to submit their application to the OIR to undergo a stringent financial reviewing process before being approved.

As an Insured, Are You Interested in Obtaining a Specific Takeout Company To Assume Your Policy?

We can truthfully say that if your agent is already contracted with the Takeout Company, then they may assume your policy. The agent may also write your policy for you with the Takeout Company which will allow you to bypass the system.

Discuss these with your local Florida agent who will advise you of your best options.

What are the benefits in having my policy assumed by a Takeout Company?

Companies like Citizens were created to cover certain risks that were not previously provided for by private insurance companies. You may now find that there are a few takeout companies that are interested in assuming your policy. This will be an excellent opportunity to enter the private market. The good news is that there are Florida Insurance companies which run privately that provide adequate coverage with much more coverage options compared to Citizens. You should consult with your local Florida insurance agent to help you find the appropriate private coverage that is affordable and within your budget.

In addition to this, your Florida agent will inform you that you can now experience a lowered risk of premium assessments.

Another benefit of insuring through a reputable Takeout company is that you are able to obtain a more comprehensive coverage (i.e. option to cover your screen, increased personal liability options and more) than what Citizens will offer. With the help of a Florida Insurance agent, you are encouraged to review the relevant takeout policy to determine if it is in your best interest to have your policy assumed, or to remain with Citizens.

Unlike you were maybe told, lower premiums are within your reach when you are transferred to a takeout company, depending on the Florida carrier and the options they provide.

How do I know if the New Takeout Company will pay my claim when I experience a loss?

Your Florida Agent will inform you that Takeout companies are in fact licensed as well as approved to operate within the Florida district by OIR. These companies also go through a second process where they go through the paces to see that they are fit to assume policies from Citizens. They are also backed by FIGA (Florida Insurance Guaranty Association) who will step in to pay claims, should they fail to.

In addition, you may receive one of the following letters from Citizens to inform you of a takeout company that wishes to assume your policy:

l  Opt out letter and form if a takeout company wants to assume your policy

l  Agent Decline Letter should your agent decline the appointed takeout company

l  Notices of Assumption and Non Renewal Form once your policy has been assumed by a takeout company in which case Citizens will not renew your policy.

l  Opt Out Confirmation Letter should the insured decide they would like to withdraw from the takeout company.

As the insured, you may wonder if your agent could opt out on your behalf?

Due to specific regulations and statutory requirements, your agent is not allowed to opt out on behalf of you, as the insured.

Once the policy has been assumed and you need to make change, you should simply submit any changes to your local Florida agent, who will then need to rewrite the policy to Citizens for processing under the current underwriting guidelines.

Are any outstanding payment with Citizens still due?

Yes, you need to ensure that any outstanding payments are honored to keep your policy active. Should the policy be cancelled by you, then you run the risk of having the renewal offer through the Takeout carrier cancelled as well.

There sure are a lot of issues and concerns that need to be dealt with in connection with Citizens. For that matter, it might be in your best interest to sign up for a comprehensive insurance review with your local Florida Insurance Agent in the first place to avoid going through all the hassles.