"Policyholders Brace for Home Insurance Coverage Shake-Up"
Thousands of Citizens policyholders in Florida may lose their coverage as Farmers Insurance and AAA announce plans to leave the state and not renew certain home insurance policies. Tens of thousands of policyholders may be forced to switch to private insurance companies, potentially resulting in pricier premiums. The depopulation process allows private companies to take over Citizens policies if their premium is within 20% of the Citizens premium. Policyholders no longer have the option to stay with Citizens if the private company's offer is within the range. The Florida Office of Insurance Regulation has approved several private companies to take over Citizens policies, with more requests pending. Citizens aims to reduce its risk by lowering the number of policies, but major growth projections pose challenges.