TALLAHASSEE — Eight insurance companies have received approval to begin selling policies for homes and businesses, adding new options in the troubled Florida property insurance market.

Three companies were approved to sell commercial insurance, while five others were approved to sell homeowners insurance policies, the state Office of Insurance Regulation said. They represent $1.2 billion in capital investment, the insurance office said.

“This is definitely a good sign of competition in the market and there is interest in Florida for writing property insurance,” said Jonathon Kees, a spokesman for the insurance office.

Among the homeowners’ insurers, Modern USA Insurance Company will focus on mid- to upper-level homeowners insurance and is set to start selling policies in October. Olympus Insurance Company has plans to begin writing homeowners policies by the fourth quarter of 2007, while Privilege Underwriters Reciprocal Exchange Inc. will sell policies for homes valued at more than $1 million.

American Keystone Insurance Company will write homeowners insurance valued from $250,000 to $3 million. And, Homeowners Choice Property & Casualty Insurance Company plans to take out 15,000 to 20,000 policies from Citizens Property Insurance in July, the insurance office said.

Citizens, created by the state to provide coverage to people who can’t get private hurricane insurance, has about 1.3 million policyholders.

Francis X. McCahill, president and CEO of Homeowners Choice, said the company plans to sell 20,000 to 25,000 policies on homes valued from $150,000 to $750,000, McCahill said.

On the commercial side, Ironshore Insurance Ltd., will cover commercial wind exposure risk; Praetorian Specialty Insurance Company will write commercial multi-peril policies; and Arch Insurance Company Europe Ltd. will focus on the energy risks of oil companies.

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