Most Citizens Customers Could See Rates Go Down Next Year
|By Tampa Tribune, Fla.|
|McClatchy-Tribune Information Services|
State insurance regulators met in the Capitol to hear Citizens executives explain the proposed rates. Any rate change has to be approved by the
"Most (customers) will see lower rates ... and hopefully that trend will continue," said Citizens CEO
Rates for policyholders in coastal areas, which are hardest hit by storms, and for those who carry "wind-only" insurance are slated to go up, Rollins said.
Standard homeowners insurance customers in
More than 1,600 homeowners in
Wind-only insurance for
Homeowners whose insurance companies won't cover them for hurricane damage often get wind-only insurance from Citizens, company spokesman
Mobile homeowners also could take a hit, with overall proposed rate increases at 8.2 percent for wind-only coverage. The rate for wind-only for commercial properties is proposed to go up 10 percent.
Most customers are seeing rate relief partly because of the cheaper cost of reinsurance that Citizens uses to safeguard itself during hurricane season. Reinsurance is a kind of insurance for insurers.
Citizens, a government-created nonprofit, came into existence after millions of Floridians couldn't get homeowners insurance following Hurricane Andrew in 1992.
In the years since, lawmakers have complained Citizens took on too much risk. At the same time, it was underpriced for the market, leaving it short on funds.
Citizens responded in part by creating a "clearinghouse," a website available only to agents, who work with customers to shop for comparable offers of coverage from participating private-market carriers.
A customer is ineligible for Citizens coverage if one of the private insurers charges premiums within 15 percent of Citizens rates. The company had more than 933,000 policies in force as of last month, records show.
The new rates, if approved, will go into effect
How to sound off
To see how the cost of your type of Citizens insurance will be changed by the new rates where you live, view a copy of the "2015 Recommended Rate Changes by County" at bit.ly/1tcpcUm.
Comments can be sent to [email protected]. Put the word "Citizens" in the email's subject line. Any comments submitted, as well as the sender's email address, become an open record under
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