TALLAHASSEE – Regulators on Friday trimmed proposed rate will increase for purchasers of the state-backed Citizens Property Insurance Corp.
The Florida Office of Insurance Regulation authorized a median 6.4 % rate improve for householders with “multi-peril” insurance policies – by far the commonest kind of coverage. Citizens had requested a ten.7 % improve for multi-peril insurance policies.
Customers with different sorts of Citizens insurance policies will see common will increase starting from 8.4 % to 11 %.
The will increase will take impact Sept. 1.
The Citizens Board of Governors determined in December to hunt an across-the-board 11 % rate improve.
For most sorts of protection, the precise requests had been barely decrease than 11 %. But the Office of Insurance Regulation mentioned Friday the requests improperly used a distinct rate-setting method than previously.
Under state regulation, Citizens faces an 11 % cap this yr on rate will increase.
In the previous, such caps utilized to the utmost rate will increase that particular person clients might see. But Citizens this yr sought across-the-board will increase at or close to the cap.
An order signed Friday by Insurance Commissioner David Altmaier mentioned regulators decided that “rates should continue to be subject to a similar per policyholder capping methodology as used in prior filings.”
That resulted, for instance, within the common rate improve dropping to six.4 % for multi-peril residential insurance policies.
Leaders of Citizens have complained that it usually fees lower than non-public insurers, although Citizens was created as an insurer of final resort.
The variety of insurance policies in Citizens has skyrocketed in the course of the previous two years as non-public insurers have dropped clients and sought hefty rate hikes due to monetary issues.
