Recently, the Florida Office of Insurance Regulation, approved nine private insurers to take over policies from Citizens Property, the state insurer of last resort. Local experts say the taking over of policies by private insurer is a sign that the states failing insurance industry is turning around.

The nine companies have been approved to take over 400,000 of Citizens policies. The approved insurers are:

  • Manatee Insurance Exchange
  • Slide
  • American Integrity
  • Southern Oak
  • Orion180 Select
  • Florida Peninsula
  • Monarch National
  • Homeowners Choice

Many of these insurers are smaller, local companies that may only write policies in Florida. Large national insurers may still be avoiding the Florida market.

Starting at the end of October, these companies will begin sending take out offers to potential policyholders. Citizens latest policy requires policyholders to switch if a private insurer offers a policy that is no more than 20% higher than their Citizens premium.

In a recent WPTV article, Stuart insurance agent Steve Butcher said older homes are a tougher market right now, and the key is that these new companies have staying power.

"We have to get the ball rolling. It’s then what’s going to happen in the overall market. it’s not the overall market. It’s the reinsurance market that can cause major headaches for these companies," said Butcher in the WPTV article.

Policyholders with Citizens may be paying more for coverage regardless of whether they switch to a new insurance company or not. Recently, the CEO of Citizens asked the Office of Insurance Regulation to approve a 14% rate hike for all policy holders. The rate hike is intended to move the cost of its policy closer to those in the private market. A decision will come later in the month.

Citizens is still the largest insurer in the state when it comes to homeowners coverage despite being the “insurer of last resort” in the state.