Homeowners in Florida are facing the possibility of a significant increase in their insurance rates, with Citizens Property Insurance proposing a 14% hike in premiums. This move is aimed at reducing the number of policyholders by the end of the year, which could result in an average price increase of over $500 for those affected. The Florida Office of Insurance Regulation recently held a public rate hearing on this matter, with state officials set to decide on whether to approve or disapprove the rate increase based on the evidence provided by the company.
The decision and final order regarding the proposed rate hike were expected to be announced on Monday, but as of now, no official announcement has been made. The rising insurance rates have led to some private insurance companies leaving the state, leaving Citizens as the insurer of last resort for many Floridians. By bringing its rates closer to those of private carriers, Citizens aims to make some policyholders ineligible for coverage, thereby reducing financial risks for the company.
According to the National Association of Realtors, Florida has the highest homeowners insurance rates in the nation, averaging nearly $11,000 per year, which is four times the national average. This increase in insurance costs poses a significant challenge for prospective homeowners, especially in a market where monthly expenses have more than doubled in recent years. Colin Rice, a Land Use and Real Estate Attorney, highlighted the impact of these rising costs on individuals looking to purchase a home, stating that it further complicates an already challenging situation.
The recommendation to raise insurance rates was passed by Citizens‘ governing board in June and now awaits approval from state regulators. If approved, the new rates would come into effect for renewal policies after January 1, 2025. This potential increase in insurance costs underscores the importance of homeowners staying informed about changes in the insurance market and exploring all available options to ensure they have adequate coverage at a reasonable price.
In conclusion, the proposed rate hike by Citizens Property Insurance could have a significant impact on over a million Floridians, potentially leading to higher insurance premiums for homeowners across the state. As state officials review the evidence presented by the company, it remains to be seen how this decision will affect policyholders and the overall insurance market in Florida. Stay tuned for updates on this developing story as homeowners navigate the changing landscape of insurance costs in the Sunshine State.
