The Florida Office of Insurance Regulation has approved a slate of 2016 property insurance rates for Citizens Property Insurance Corp.
In an order signed September 8 by Florida Commissioner Kevin McCarty, FLOIR set the rates for Citizens multi-peril and coastal homeowners that reflect an overall statewide rate decrease of 1.8 percent increase for homeowners’ multiperil policyholders across the state
According to a statement from FLOIR, the office modified some of Citizens’ recommended rates to address key issues cited as causes for increasing homeowners’ insurance costs for policyholders in South Florida and on the coast. These included Citizens’ purchase this year of more private reinsurance (insurance for insurance companies) and pre-event financing (a short-term loan to recover claims costs payable by the Florida Hurricane Catastrophe Fund).
Citizens presented its rate proposal at a public hearing on August 25 in front of Florida insurance regulators and addressed questions FLOIR had on its rate requests. Citizens highlighted the surge in water loss trends in three South Florida counties as the main reason for rate increases. The combination of these factors drove up overall rates despite reductions to most policyholders living farther from the coast. The Office’s subsequent findings are described in more detail within the order shown below.
According to a statement from Citizens, the FLOIR-approved rates reflect a decrease for 60 percent of Citizens customers but an average overall 1.8 percent increase for homeowners’ multiperil policyholders across the state as of Feb. 1, 2016 for new and renewal business. This probably means increases here in S. Florida from 5-10% or more in some cases.
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