FORT MYERS — Citizens Property Insurance Corp. cut ties with 200,000 more customers last week as private insurers continue to pick up policies through the state's depopulation program.

This might seem like a headache for Citizens' policyholders but Mark Friedlander with the Florida Insurance Information Institute says it could benefit customers statewide. "The winners here are consumers because now you have competitive pricing for home insurance, something we hadn't seen for so many years," Friedlander said. Friedlander said other insurance companies can now compete for business, allowing consumers to find better deals. "The successful depopulation of Citizens is a very strong sign of Florida's property insurance market stabilizing," he said. "You can't get a stronger sign than having your state-backed insurer of last resort get to a manageable level of risk."

Michael Peltier, a spokesperson for Citizens Property Insurance, said the company's policy count is down 42% from January, a reduction of 355,000 policyholders statewide.

"The October depopulation numbers are the latest indication that the Florida property insurance market has returned to health," Peltier said in a statement.

"New companies are entering the market and existing private insurers are again seeking policies throughout the state. As Florida’s insurer of last resort, Citizens’ policy count shrinks when the market is healthy. That is what we’re seeing here."

The state requires Citizens' customers who receive an offer from a private company within 20% of their current rate to make the switch.

Friedlander said he encourages homeowners to shop around and compare deals.

"We are talking to insurance agents across the state, including southwest Florida, that tell us they are getting their customers much better rates when they shop the policy," he said. "We're talking potentially up to 40% less year over year."

He said these changes come following a crackdown on claim lawsuits and fraud, which he identified as significant factors in Florida's struggling insurance market.

Despite insurance costs still being high, Friedlander said he's hopeful about the future.

"We have 17 new insurers that have entered Florida in the last couple of years, plus existing insurers are growing their market share," Friedlander said.

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