Some bad news for Citizens Insurance policyholders as we approach the beginning of 2019. Earlier this month, the last resort insurer decided to raise its residential insurance rates by just over eight percent. Policyholders can find some degree of relief in knowing that the rate hikes will not kick in until the fall season in September.
For those curious as to why Citizens is raising rates, it is the same reason many other insurance companies besides Citizens have decided to do the same: lawsuits in the property insurance market. Specifically, it’s lawsuits involving water damage, which are particularly high in all of South Florida, including all three major counties.
Citizens will still need to receive the OK from Florida’s Office of Insurance Regulation before the intended rate increases can go into effect in September. The rates would fully take effect throughout 2019 as existing policyholders opt to renew. Citizens currently has well over 400,000 policies. Among those expected to be affected by rate hikes, it would include condominium owners, single-family homeowners, as well as renters. However, the location will play a role in these increases.
This information is provided by Miami insurance lawyer Alonso & Perez, LLP. Our areas of practice include bankruptcy, insurance litigation, foreclosure defense, immigration law, and more. Call 305-676-7545 to speak with an insurance settlement attorney Miami and receive a free consultation We look forward to working with you.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.