More Homeowners Dropped by Citizens Insurance: Are You Next, North Miami Beach?

North Miami Beach homeowners relying on Citizens Property Insurance Corporation for their coverage may face increasing uncertainty as the state's largest insurer prepares to shed more policies. Starting next week, Citizens will begin dropping additional property insurance plans, a move that could impact many residents in neighborhoods like Sans Souci and Eastern Shores who have few other options.

Citizens currently insures over a million Floridians, often serving as a last resort for property owners unable to secure policies elsewhere or those priced out of the private market. Eligibility for Citizens insurance is typically limited to those whose next cheapest comparable plan is 20% higher or more.

The insurer is actively pursuing its "depopulation program," which aims to transition policyholders to private companies. Since last September, nearly 300,000 policies have been shed. Companies approved to assume Citizens policies include Slide Insurance Co., Florida Peninsula Insurance Co., Edison Insurance Co., Southern Oak Insurance Co., American Traditions Insurance Co., and People’s Trust Insurance Co., according to the state Office of Insurance Regulation website.

Policyholders receiving depopulation notices are those whom Citizens has determined may no longer meet their eligibility criteria. This comes as legislation is also moving through the Florida Legislature that could further reduce Citizens' rolls by limiting eligibility for second homes.

Earlier this year, Governor Ron DeSantis expressed concerns about Citizens' financial stability, telling CNBC that the insurer is "not solvent." This statement raises questions about Citizens' ability to fulfill its obligations in the event of a major storm, a critical concern for coastal communities like North Miami Beach, with its miles of Atlantic shoreline and Intracoastal Waterway.

For North Miami Beach residents who receive a depopulation notice or are concerned about their current coverage, understanding their options is crucial. Property owners facing damage claims or disputes related to tropical storms, hurricanes, severe weather, hail, roof damage, pipe bursts, water damage, mold, smoke/fire damage, lightning, theft, vandalism, or construction defects may seek legal guidance.

The Consumer Law Office (CLO) offers free comprehensive property damage assessments and consultations for those seeking to resolve property damage claims and disputes. They can be reached at 305-940-0924 or visited at consumerlawoffice.com. CLO operates on a contingency basis, meaning they only get paid if their clients receive compensation from their insurance company.