Homeowners Choice Takes-out 59,500 Florida-backed Citizens Policies

Homeowners Choice Inc., a Florida-based provider of homeowners’ insurance, announced that its wholly-owned insurance subsidiary, Homeowners Choice Property & Casualty Insurance Co. Inc., received the go-head to assume 59,500 policies from Citizens Property Insurance Corp., Florida’s state-sponsored insurance company.

The policies are assumable under the state’s “take-out” program, designed to reduce the state’s risk exposure by encouraging private insurance companies to assume policies from Citizens. Citizens, which began as Florida’s home insurer of last resort, has become the state’s largest homeowners’ insurance provider.

Homeowners Choice said it would begin notifying the policy holders immediately. Once notified, policy holders will have up to 30 days to opt out and stay with Citizens. The final assumption date will be Oct. 14, according to the company.

Homeowners Choice chief executive officer, F.X. McCahill, said the Florida Office of Insurance Regulation authorized the insurer to assume up to 95,000 policies. The company’s underwriting policies limited the number to 59,500, McCahill added.

Source: Homeowners Choice Inc.