TALLAHASSEE (CBSMiami/AP) – Roughly 400,000 Citizens insurance policyholders may find themselves with a new property insurance company by the end of November.
State regulators have signed off on a plan to give 10 different insurance companies nearly a third of all Citizens Property Insurance Corporations policyholders this year.
The shift from Citizens to a new company is done automatically unless a customer objects.
The state-backed Citizens is the largest residential property insurer with 1.22 million policyholders.
Gov. Rick Scott and other politicians have been pressuring Citizens to scale back its size due to fears a major storm could wipe out its reserves.
One of the companies slated to get 50,000 policies is Heritage Property Insurance and Casualty. The start-up insurer struck a controversial $52 million deal with Citizens earlier in the year to absorb policies.
(TM and © Copyright 2013 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2013 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)