ORLANDO, Fla. — Home owners insurance has been a hot and pressing topic for the past two years in the Sunshine State, and recent communications from the state-backed insurer of last resort indicate that trend will likely continue.

What You Need To Know

  • Citizens Property Insurance has informed about 300,000 policy holders that a private company wants to assume their account

  • Customers are able to opt out of the new coverage, but a letter from Citizens says that may not be the case in the future

  • The deadline for policy holders to respond is Oct. 10

Many property owners say property insurance rate increases have led them to Citizens Property Insurance, but it appears the company is looking to trim its list of policy holders.

Roughly 300,000 Citizens customers have received a letter in the mail from the company explaining how their coverage could be changing in the future.

In the letter, Citizens explains that a private-market insurance company has expressed interest in assuming control of their policy. Policy holders have the option to decline the offer and stay with Citizens, but "future offers with a premium of no more than 20% greater than Citizens' premium will render you ineligible to renew with Citizens."

Central Florida resident Mary Dees received the letter and said it caught her by surprise.

“I was confused on what it was stating as being great news,” she said. “I was being switched from Citizens to a different company I had never heard of.”

For roughly 20 years, Dees has lived on Lake Daniel. She says she is not in a flood zone and does not have an older roof, but that didn't stop State Farm from dropping her and several neighbors. Like many do, she shopped around for a new policy.

“It was going from $4,000 to $9,000,” she said. “And then they would tell me even at $9,000 they wouldn’t insure me.”

Citizens' move to transfer policies to other insurers has opened the door for other companies.

“The private companies get to choose who they want,” said Steve Gensolin, of the Little Star Insurance Agency. “So if your home has a newer roof, if your home is in an area that maybe has capacity, that’s important to know.”

The company looking to acquire Mary’s policy is Slide insurance, a new company offering a rate that is $1,500 more than what she pays now.

But Dees said shopping around yet again is not a task she is looking forward to.

“Ones that I would go with were out-priced, I wasn’t able to afford,” she said. “Or they wouldn’t accept me, or both.”

Dees has already opted back in for Citizen’s for the next year, but knows she will have to find new coverage soon. 

Citizen’s has also informed her that she will continue to receive future offers from private-market companies.

It’s important to note for many Citizen policy holders they are getting their letters late because the printer who was in charge of the letters could not get them all out in time. Policy holders have until Oct. 10 to respond to Citizens.