Homeowners Choice Property and Casualty Insurance Co. has assumed approximately 53,750 policies from Citizens Property Insurance Corp., Florida’s state-backed insurance company, the parent company says in a Tuesday news release.
Homeowners Choice is owned by HCI Group Inc., a holding company with operations in homeowners insurance, information technology services, real estate and reinsurance. Homeowners Choice is HCI’s largest subsidiary.
HCI says the policies amount to $196 million of in-force premiums. The assumption of coverage is effective Nov. 21, based upon an approval in September by the Florida Office of Insurance Regulation. More than 70% of policyholders assumed will see savings over the expected renewal offer from Citizens, HCI says.
Homeowners Choice was approved for 75,000 policies, made 72,958 offers and assumed 53,750 policies — a 74% acceptance rate, HCI says.
Florida’s goal is to further “depopulate” Citizens Property Insurance Corp. by moving policies into private companies.
HCI says its acceptance rate indicated it was competitive and attractive to the consumers.
“The strong acceptance rate was the result of Homeowners Choice offering policyholders a competitively priced renewal policy and expanded coverage compared with their existing Citizens policy,” says Paresh Patel, HCI’s chairman and CEO, in a statement.
HCI Group’s other subsidiary, TypTap Insurance Co., is expected to assume policies from Citizens Property Insurance Corp. in December and January 2024.
HCI Group owns subsidiaries including TypTap Insurance, Homeowners Choice, software company Exzeo USA and real estate company Greenleaf Capital LLC.