State approves Citizens policy transfers

50,000 may be shed to 2 firms

Two private-market insurance companies have been approved to “take out” up to 50,000 residential policies from state-run Citizens Property Insurance Corp.

Safepoint Insurance Co. and Southern Oak Insurance Co. were approved by the state Office of Insurance Regulation to transfer the policies beginning Oct. 17, the office said in a news release Tuesday.

The approvals are part of the state’s ongoing program to depopulate Citizens, which is intended to be an insurer of last resort for property owners unable to find affordable insurance on the private market.

Safepoint, based in Temple Terrace, is approved to remove up to 20,000 personal residential policies, 10,000 multi-peril policies from Citizens’ coastal account and 5,000 wind-only policies.

Southern Oak, headquartered in Ponte Vedra Beach, is approved to remove up to 5,000 personal residential policies, 2,500 multi-peril coastal account policies and 7,500 windonly policies.

Both companies are among a handful of privatemarket insurers that remain active in the depopulation program. Previously this year, Safepoint was approved to remove 16,825 policies and assumed 9,051 of them. Southern Oak was approved to remove 45,000 policies and has assumed 2,276.

Customers selected for depopulation will receive a form from Citizens that will explain coverage options, coverage comparisons and estimated renewal costs. The form will also provide instructions for how policyholders can opt out of the take-out and remain with Citizens.