Citizens Insurance blames vendor for delayed policy change notice to customers
TAMPA, Fla. - More than a quarter-million Citizens Property Insurance customers are getting letters in the mail with an offer to switch their policies over to private insurance, but some of them will not have much time to weigh their options.
If these customers do not open their mail and respond by the deadline (now extended by five days to October 10), their policies will default to the private company at a cost that is potentially far higher than their premiums.
This week, Citizens Insurance told the Tampa Bay Times that the letters were delayed due to an issue with the company hired to print the letters. The state-run insurer said the vendor was overwhelmed by the volume of notices to be mailed out.
Letter sent to Citizens Insurance police holders.
As a result, some policyholders are getting less than the standard 30 days to decide on whether to stay with Citizens Property Insurance or pay more to go private.
READ: Floridians may see more homeowner's insurance options in coming months
Most of the letters are dated August 28, but many customers were notified weeks later. One policyholder, an employee at FOX 13 News, reported receiving their letter in mid-September, offering a premium nearly twice the amount they are currently paying with Citizens. They said they plan to decline the offer to move to a private insurer.
File: Damaged home
Citizens has seen its policy county grow to nearly 1.5 million in recent years, becoming the largest insurer in the state as other companies pulled out of Florida. To reduce the state-run insurer's policy count, state regulators have given approval for several private companies to assume some of Citizens' policies.
READ: Citizens Property Insurance rate hike denied as company’s customer base experiences growth explosion
Customers who receive an offer from one of the private insurers have two options. If the offer is within 20 percent of Citizens' rates, the customer must either accept it or shop around for cheaper coverage. Either way, they cannot remain under Citizens.
A spokesperson for the insurer said all customers should receive their letters by Friday. That gives everyone just over two weeks to receive and open their mail, weigh their options and respond.