Citizens Insurance wants double-digit rate hike after spike in Florida policyholders
TALLAHASSEE, Fla. - The Florida Office of Insurance Regulation will meet Thursday afternoon to discuss proposed rate hikes from state-backed Citizens Insurance.
Citizens’ policyholders could see an average increase of 14 percent in their rate.
The double-digit ask comes after years of pleas to increase rates to keep pace with the private insurance market.
READ: What proposed Citizens insurance rate hike means for homeowners
Citizens says state regulations have kept its rates artificially low, which has attracted hundreds of thousands of extra customers looking to avoid skyrocketing rates in the private market.
File: Tree fell on roof.
Many more have signed on because they don’t have another insurance option.
Hundreds of thousands of Floridians have been dropped by their insurers in recent years as record numbers of companies have either been declared insolvent or pulled out of the state. That’s caused Citizens’ customer base to balloon, up to nearly 1.3 million policyholders by April of this year.
READ: Florida Senate passes property insurance overhaul
The low rates have also created a widening gap between what customers pay in, and what it would cost to cover losses after a major storm.
Two men clean up after a tree fell.
Citizens is considered a last resort because it covers much less and could subject customers to big surcharges to cover its losses. If those losses are high enough, that could end up costing even those with private insurance.
Thursday’s hearing will begin at 3 p.m.
For more information on how to participate online and to submit public comments, click here.