Citizens to free itself of some condo policies

Posted at 2:27 PM, Feb 11, 2013
and last updated 2013-02-11 09:28:47-05

TALLAHASSEE, Fla. (AP) - The governing board of state-backed Citizens Property Insurance Corp. has approved another "depopulation" plan to move thousands of its coastal hurricane policies to a private insurance company.

The board voted Monday to allow Weston Insurance to assume wind-only policies from Citizens, including policies for condominiums in coastal areas. Citizens' is Florida's largest property insurer with nearly 1.3 million policyholders as of Jan. 31.

Weston agreed to keep the policies for at least three years and will not exceed the 10 percent annual rate cap that now exists for policyholders, barring any legislative changes this spring. Weston has $35 million in surplus and expects to have $50 million in surplus by May 31.

Citizens' has shed roughly 200,000 policies in recent months in an attempt to reduce its loss exposure.