Homeowners Choice Assumes Policies from Citizens

Homeowners Choice Inc., a Florida-based insurance holding company, announced that its wholly-owned subsidiary, Homeowners Choice Property & Casualty Insurance Company Inc., has assumed approximately 45,000 homeowners’ policies from Citizens Property Insurance Corporation, Florida’s state-created 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. Under the take-out rules, affected policyholders are entitled to opt out before and after the assumption and remain with Citizens. By not opting out, approximately 45,000 policyholders chose to leave Citizens for Homeowners Choice.

Homeowners Choice announced in September that it had approximately 18,000 policies. The assumption of these policies represents more than a three-fold increase in the company’s policy count.