Private insurers in Florida are approved to take 40,000 policies from Citizens Property Insurance

homeowner's insurance — Property insurance. by designer481 via iStock for WMNF News.

Five property insurers have received approval to remove as many as 39,850 policies from the state’s Citizens Property Insurance Corp., with almost all of the changes expected to take place about Feb. 20.

State Insurance Commissioner Michael Yaworsky last week signed a series of orders that are part of a broader effort to shift policies from Citizens to the private market.

Citizens saw the number of its policies dramatically increase during the past three years because private insurers dropped customers and raised rates amid financial problems.

But the “depopulation” effort has helped curb the growth.

As of Nov. 24, Citizens had 1,255,381 policies, down from as many as 1.412 million policies earlier in the fall.

The new approvals will allow Security First Insurance Co. to remove as many as 20,000 policies; Orange Insurance Exchange to remove as many as 9,000 policies; Florida Peninsula Insurance Co. to remove as many as 7,500 policies; Edison Insurance Co. to remove as many as 2,500 policies; and Condo Owners Reciprocal Exchange to remove as many as 850 policies.

The actual number of policies shifting to the companies will likely be lower than the maximum amounts allowed.