Citizens Insurance Proposes Double-Digit Rate Hike at Board Meeting

The Citizens Board of Governors is set to hear a proposal for double-digit rate hikes, which are expected to be implemented by the end of this year, in Tallahassee, Florida. Florida’s Citizens Property Insurance Corp. recently revised its rate hike proposals, settling on an average increase of 11.5% for multi-peril policies. When considering all personal lines such as wind-only and mobile-home policies, the average rate hike becomes 12.3%. Additionally, many commercial properties may face an average increase of 10.2%.

This decision comes after Citizens was instructed by the state Office of Insurance Regulation in August to withdraw its initial proposal, which sought an average increase of 13.3% across the board. The discarded proposal specifically targeted primary residences with multi-peril policies, aiming for a 12% hike. In response, Citizens spokesperson Michael Peltier stated in mid-September that they have addressed the concerns raised by the Office of Insurance Regulation and believe that the rates presented to the board reflect the requested changes.

If approved and left unaltered, the proposed rate increases for commercial properties would take effect on November 20th, while personal-line rate hikes would begin on December 16th. The Citizens Board of Governors meeting, where these proposals will be discussed, is scheduled to commence at 8:30 a.m. in the Augustus B. Turnbull Center at Florida State University in Tallahassee.

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