Citizens Insurance Seeks Rate Hikes For Florida Homeowners

Citizens Property Insurance Corp., a state-backed insurance company, has proposed a 14.2% increase in average rates this year in an effort to shift policies into the private insurance market. The proposal still requires approval from the Office of Insurance Regulation and would result in varying increases depending on the type of policy. For example, primary-residence multi-peril policies, the most common type of homeowners’ coverage, would see a 12% increase effective November 1st. President and CEO Tim Cerio stated that Citizens’ rates are currently “artificially low” compared to the private market and that the company needs to return to a smaller role in the market, as it has experienced significant growth in the past two years.