In 2002, Florida created Citizens Property Insurance as a non-profit, government entity that would cover high-risk properties that private insurers declined. This property could be homes, businesses, and other types of structures that private insurers deemed too risky. While this coverage is mainly funded by premiums, during times of disasters, fund shortages might be funded by an assessment against most Florida property holders and not just property owners covered by the high-risk insurer. This keeps the cost of high-risk coverage lower, but it costs all Floridians money after a disaster.
With a property insurance takeout program in place, Citizens Insurance has been authorized to reduce the number of covered properties by encouraging private insurers to assume coverage of some of these homes and businesses that may not be truly too high risk for the private market. Southern Oak Insurance has been part of this takeout program for several years.
What is a Property Insurance Takeout?
This term simply describes the act of encouraging private insurers to offer Florida homeowners insurance or other property insurance to replace the public, high-risk program. These are some potential advantages of property insurance takeouts:
- Reduced assessments: All Florida property owners benefit from reduced assessments in case of a fund shortage. This is because less properties are covered by the public program.
- Better coverage: This policy comparison contrasts a private policy from Southern Oak Insurance with a Citizens Insurance policy. For example, Southern Oak policies might cover awnings and aluminum carports, but the public policy does not. Read more about typical policy limits. Always ask your agent for specific details on your policy.
Learn More About Property Insurance Takeouts
Both insurance agents and the professionals at Southern Oak Insurance believe that the Florida homeowners insurance market becomes healthier when coverage gets assumed by private companies. Consumers get more choices, and all Floridians enjoy a reduced risk of assessments. Independent insurance agents can discuss the merits of Southern Oak policies with Florida property owners. Find a local agent near you.
If you have any questions concerning Florida homeowners insurance, or would like to speak to an agent directly, please visit our website.