Citizens Property Insurance Corp., the state-created insurer of last resort, has taken advantage of the cheaper cost of reinsurance to safeguard itself during the upcoming hurricane season.
The company announced Thursday it will have “approximately $3.1 billion in reinsurance available in the event of a major storm or series of storms this hurricane season,” which lasts June 1-Nov. 30.
The cost of reinsurance — a kind of insurance for insurers — has been going down.
Here’s what Thursday’s news means: Citizens will be able to pay out claims for damages if a “70-year storm” hits the state without having to charge policyholders extra.
The reinsurance will cost the company about $300 million in 2014, almost the same amount spent last year for similar coverage, it said.
The difference is that only bought $1.85 billion in reinsurance coverage, so Citizens is getting more bang for its buck.