ORLANDO, Fla – Citizens Property Insurance Corporation’s Board of Governors on Wednesday approved a 2016 rate package that lowers rates for nearly half of Citizens’ personal lines policyholders while responding to increased water loss claims and continued inadequate rates for its remaining policyholders along the coast.
By unanimous vote, the board approved an overall rate increase of 3.2 percent for personal lines policyholders, with most of the increases targeting property owners along the coast and in South Florida, where rates continue to be inadequate.
Most inland policyholders will see rate reductions under the proposal to be submitted in July to the Office of Insurance Regulation, which must approve any rate changes. Inland homeowners will see an average 1 percent drop in multiperil rates while inland mobile home owners will see rates reduced by 7.4 percent.
Coastal homeowners will see average multiperil increases of 8.6 percent while mobile home owners and condominium owners will see rates rise by up to 10.2 percent. Personal lines policyholders clustered in Palm Beach, Broward, Miami-Dade and Monroe counties will see the bulk of higher rates under the Legislative glide path established to bring those rates in line with the private market.
“Every year, Citizens’ actuaries calculate rates based on the same methodology used by insurance companies all over the world, which compares potential risk to the ability to pay claims,” said Chris Gardner, Chairman of Citizens Board of Governors. “We are focused on maintaining a transparent process that both the public and the Office of Insurance Regulation can appreciate.”
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