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Last Resort Insurer May Raise Its Rates

The state-run Citizens Property Insurance Corp. is once again becoming the “last resort” option for Florida homeowners unable to find reliable insurance, with private sector insurance premiums skyrocketing throughout the state.

Yet a state senator who doesn’t want Citizens to reach the levels of a decade earlier is planning to increase new consumer prices so that the business becomes a last resort that is less competitive. A policy to avoid offering policies to new consumers at unusually low prices is expected to be debated by the Board of Governors while keeping a ten percent annual premium limit on current customers who upgrade their policies.

The senator seeking the rise argues the ten percent ceiling has caused the premiums of people to fall too much behind those of rival private-market insurers that have been pressured to lift their rates due to rising expenses from lawsuits, litigation, and other variables. If Citizens fails to change their prices to align with the private sector for new consumers, more customers may leave those insurers, possibly destabilizing them as Citizens becomes unwieldy large.

To read more, visit https://www.sun-sentinel.com/business/fl-bz-rate-hikes-urged-citizens-20201215-lp4d7m4hpnh4flw4e65ltkdgmu-story.html.

This information is provided by Miami insurance attorney Alonso & Perez, LLP. Our areas of practice include bankruptcy, insurance litigation, foreclosure defense, immigration law, and more. Call 305-676-7545 to speak with one of our attorneys or a Miami insurance claims attorney 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.