In a pivotal move that's set to influence the wallets of numerous Floridians, Citizens Property Insurance Corp's board has decided to back a significant rate hike that will swell insurance premiums if given the green light. As per the information procured by WFLA, the unanimous decision made during Wednesday's meeting pins the average rate increase for its most common "multi-peril" homeowner policies at an estimated 13.5%.
Adding to the prospective financial pressure on citizens, condominium owners might be looking at an even steeper average hike, teetering on the edge of 14.2%, as detailed in the coverage by Orlando Sentinel. The proposed escalation would span a spectrum of diverse living arrangements, including renters and mobile homes—with state law placing a ceiling at 14% for primary residences and a whopping cap of 50% for properties like second homes that don't qualify as primary. This proposal comes amidst apparent signs of recovery in Florida's property insurance market, following legislative efforts to address litigation against insurers.
The implications of these proposed adjustments are vast, considering that Citizens is the largest state insurer with ownership of approximately 1.2 million policies, resulting from the depopulation initiative which aims at reducing the insurer's volume of policies, according to data referenced by WPTV. The Citizens President and CEO Tim Cerio underscored the importance of the depopulation efforts, hoping for the company's policy count to drop below the one million mark by the end of the year.
However, the pressurized peak of hurricane season could throttle back the depopulation endeavor, with private insurers wary of assuming fresh risks during this volatile period. In the words of Jennifer Montero, Citizens chief financial officer, and collected by the Orlando Sentinel, the expectation is that "October, November, December will be very active (for depopulation)." That being said, should the Office of Insurance Regulation nod in agreement, Floridians insured by Citizens could see these new premiums materialize starting January 1, 2025, a reality that will likely stir up diverse reactions as neighbors across the state reevaluate their insurance options.
