Florida Office of Insurance Regulation Approves Homeowners’ and Dwelling Fire Rate Increases for Citizens Property Insurance
Oct 2, 2012
The Florida Office of Insurance Regulation advised today, October 2, 2012, that it has issued an Order establishing homeowners’ and dwelling fire rate increases for Citizens Property Insurance Corporation (“Citizens”). These rates will be effective January 1, 2013 for new and renewal multi-peril business, and February 1, 2013 for new and renewal wind-only business.
An OIR news release detailing the rate changes is reprinted below. To access a Colodny Fass& Webb recap of the September 20 Citizens public rate hearing, click here.
Should you have any questions or comments, please contact Colodny Fass& Webb.
Office Announces Decision on Citizens Property Insurance Corporation’s Rate Filings for Homeowners’ and Dwelling Fire Insurance
TALLAHASSEE, Fla. – The Florida Office of Insurance Regulation (Office) issued an Order establishing homeowners’ and dwelling fire rates yesterday for Citizens Property Insurance Corporation (Citizens). The effective dates for the new rates on both the homeowners’ and dwelling fire policies are January 1, 2013 for new and renewal multi-peril business, and February 1, 2013 for new and renewal wind-only business.
The overall rate changes established by the Office are:
|
(Incl. Sinkhole and FHCF Cash Buildup Factor Changes) |
|
||||
|
Account |
Original Rate Requested |
Rate Established |
|
Original Rate Requested |
Rate Established |
|
HOMEOWNERS |
11.8% increase |
10.8% increase |
Sinkhole Portion |
29.6% |
21.4% increase |
|
DWELLING FIRE |
12.0% increase |
8.8% increase |
Sinkhole Portion |
43.7% increase |
44.8% increase |
“I would like to express my gratitude to all those who provided input for the Citizens rate filing, especially as we considered the impact of proposed substantial rate increases for specific areas within the state. The final rates indicate a more reasonable approach toward moving a significant portion of Florida’s demographic to actuarially-supported rates. Our primary goal is to ensure Citizens policyholders are treated fairly and retain an opportunity to return back to a robust private insurance market as the Florida Legislature intended,” stated Florida Insurance Commissioner Kevin McCarty.
The rates established by this order reflect a cost-savings of 54.7 percent in sinkhole rates as a result of Senate Bill 408 and an independent study commissioned by Citizens.
The Office reached its decision following a 45-day deliberative process, including a public hearing conducted on September 20, 2012 in Miami, Florida. This hearing allowed Citizens to present additional information, and featured feedback from the Office of the Insurance Consumer Advocate, legislative representatives, Citizens’ policyholders, and the public.
Tentatively, decisions on the remaining filings by Citizens will be rendered according to the schedule below:
October 8, 2012:
Mobile Home Multi-Peril (#12-14394 & #12-14395)
Mobile Home Physical Damage (#12-14400 & #12-14401)
October 19, 2012:
Commercial Lines Account (#12-14702, #12-14703, #12-14707)
Commercial Lines – wind only (#12-15425, #12-15426, and #12-15611)
Any of the filings submitted to the Office by Citizens can be accessed via the I-file database using the following search criteria: enter the file log number or “Citizens” in the company name field. When the selection appears, scroll to the bottom of the results page for the most recent filing information.
For more information about the Citizens public rate hearing and filings, visit the Citizens Property Insurance Rate Filing page on the Office’s website.
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