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Wednesday, Feb 22, 2017

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Citizens gets ready for hurricane season

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.