Florida’s largest insurance company is preparing to shed tens of thousands of policies, and many homeowners could find out whether they’ll be forced to go with a new insurance carrier in the coming weeks.

The state-run company Citizens Insurance currently has 1.3 million customers. Between now and Jan. 1, 2024, they’re going to wipe away half a million of those customers.

The company will randomly assign those policies to new companies. Homeowners may have to accept the offer even if it means paying more.

New state law says policy owners must accept a private insurer if their policy increases by 20%.

If the new policy totals more than 20%, they have the right to reject the take-out offer.

Mark Friedlander with the Insurance Information Institute pointed out that those Citizens customers will not have a choice.

“If you get a takeout offer, it will be from one participating company, not from multiple companies,” Friedlander said.

Florida has five new residential insurers that have been approved to write business in the state, including Orange, Orion180, Mainsail, Tailrow, and Loggerhead.

Reid McDaniel with McDaniel Insurance Solutions said that December is when those are going to start opening and are expected to take some of the policies from Citizens.

However, the Insurance Information Institute isn’t so optimistic that everyone will transfer to private insurers.

“The only way this program will be successful is if Citizens is allowed their rate increase,” Friedlander said.

Citizens requested a 12% hike to keep up with private insurers. The state rejected the request, meaning many Citizens customers could reject their takeout offer as more private companies raise rates.

Friedlander said he has heard from agents statewide that SLIDE insurance customers are seeing very large increases as their policies begin to renew.

SLIDE assumed a majority of policies from companies that went bankrupt, including St. John’s and UPC.

To anyone who receives a take-out offer from Citizens and is appointed to another company, the best advice would be to shop around and make sure you’re getting the best deal.