Florida Office of Insurance Regulation Issues Citizens Property Insurance Rate Filing Order
Sep 9, 2015
The Florida Office of Insurance Regulation (“OIR”) established the 2016 rates for Citizens Property Insurance Corporation (“Citizens”) in an Order issued late yesterday, September 8, 2015.
To view the Order, click here.
The Order sets the rates for Citizens multi-peril and coastal Homeowners, Dwelling Fire, Mobile Homeowners and Mobile Homeowners Dwelling Fire accounts.
Citizens’ average premium for coastal wind-only homeowners policies will rise to $2,599, up 8.3 percent from the 2015 average of $2,400.
“This reflects continued progress along the statutory ‘glide path,’ under which no policyholder can experience more than a 10 percent increase per year exclusive of coverage adjustments,” Citizens explained in a press release issued just after the OIR Order was released.
Mobile homeowners will see a 6.4 percent reduction in multiperil rates while wind-only mobile home coverage, which remains well below market rates, will increase by 10.4 percent.
Despite a reduction of nearly 900,000 policies since late 2012, Citizens remains the largest property insurer in Florida with 601,213 personal and commercial policies in force as of September 4, 2015
The overall estimated statewide average rate changes are shown in the chart below and includes no rate increases for sinkhole coverage.
With the Order, the OIR modified some of Citizens’ recommended rates to address key issues cited as causes for increasing homeowners’ insurance costs for policyholders in South Florida and on the coast. These included Citizens’ 2015 purchase of more private reinsurance and pre-event financing to recover claims costs payable by the Florida Hurricane Catastrophe Fund (“FHCF”).
At an August 25, 2015 public rate hearing, Citizens representatives clarified these issues, as well as the factors driving the surge in South Florida water loss claims. The OIR’s subsequent findings are described in more detail within the Order.
The effective date for both new and renewal rates within Citizens’ Personal Lines Account (“PLA”) and Coastal Account (“CA”) is February 1, 2016.
The chart below provides the overall statewide average estimated rate changes established by the OIR for each account individually:
|
(Includes FHCF Cash Buildup Factor Changes) |
||
|
Account |
Original Rate Requested |
Estimated Rate Established* |
|
Homeowners Multi-Peril (PLA) |
1.3% increase |
1.8% increase |
|
Homeowners Multi-Peril Wind Only (CA) |
9.0% increase |
8.3% increase |
|
Property/Personal Dwelling Fire (PLA) |
0.9% decrease |
1.5% decrease |
|
Property/Personal Dwelling Fire Wind Only (CA) |
9.5% increase |
9.1% increase |
|
Mobile Homeowners Multi-Peril Wind Only (CA) |
10.4% increase |
10.4% increase |
|
Mobile Homeowners Multi-Peril (PLA) |
5.3% decrease |
6.4% decrease |
|
Mobile Homeowners (Dwelling Fire) (PLA) |
4.1% decrease |
6.8% decrease |
|
Mobile Homeowners (Dwelling Fire) Wind Only (CA) |
9.8% increase |
9.9% increase |
* This is an estimate of the rate effect on earned premiums determined using selected changes from the in-force policy distributions and the rates in the Order.
Rate filing decisions for Citizens’ commercial residential and commercial non-residential accounts are still pending.
Rate filings can be accessed via the OIR’s “I-File Forms & Rate Search” system using the following search criteria in either the “Quick Search” or “Advanced Search” options:
- File log numbers, or
- Entering “Citizens Property Insurance Corporation” as the “company name.”
When the selection appears, scroll to the bottom of the results page for the most recent filing information.
Visit the Citizens Public Rate Hearing Web page on the OIR’s Web site for additional information.
Should you have any questions or comments, please contact Colodny Fass.
Click here to follow Colodny Fass on Twitter (@ColodnyFassLaw)
To unsubscribe from this newsletter, please send an e-mail to colodnyfassnews@gmail.com.