Regulators OK’d a plan for insurer Condo Owners Reciprocal Exchange to assume up to 400 “commercial residential” policies – that cover condo buildings – from Citizens.
TALLAHASSEE, Fla. – Florida regulators last week approved a plan that could lead to condominium-association policies leaving the state’s Citizens Property Insurance Corp.
The plan will allow insurer Condo Owners Reciprocal Exchange to assume up to 400 “commercial residential” policies from Citizens, according to an order signed by Insurance Commissioner Michael Yaworsky.
Generally, commercial-residential policies are purchased to cover condominium buildings. They are not policies for individual condominium units. The approval is part of a broader effort by Citizens to shift policies into the private market.
Previous approvals, however, have dealt with shifting individual residential policies.
The state Office of Insurance Regulation announced in November that it had given the go-ahead for Condo Owners Reciprocal Exchange to do business in the state.
Citizens has been trying to shed policies after growing during the past three years to become the largest property insurer in Florida amid financial problems in the private market. Citizens, which was created as an insurer of last resort, had 1.163 million policies as of Jan. 26, according to data on its website.
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