The Board of Governors of Citizens Property Insurance Corp has accepted rate guidelines after holding off on authorizing its 2021 premiums, which the insurer hopes would make its rates more aggressive with the private sector and decelerate the influx of policyholders coming back to the insurer.
A statewide average rate rise of a little over 7 percent for policyholders was proposed, applying to policyholders such as homeowners, renters, and more. The 2021 premiums will go into effect for policies extended after August, should it receive approval from the Florida Office of Insurance Regulation (OIR).
A proposal was also approved by the Citizens’ Board that prospective policyholders pay actuarially sound rates versus entering the insurer with capped premiums paid by current Citizens policyholders. The recommendation would raise prices for new companies by an average of just over 20 percent if approved by the OIR. The insurer is legally required to suggest actuarially sound premiums, thus keeping with a regulatory glide path that restricts 10 percent growth in individual rates, excluding improvements in coverage and surcharges. Private insurers, in the meantime, are obtaining cost hikes well past the 10 percent limit, broadening the price disparity between private insurance policies and residents.
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