Citizens could hit Keys with big hike

Aug. 28--Florida Keys policyholders with the state's Citizens Property Insurance Corporation could see the highest rate hikes in the state in 2016.

The non-profit corporation seeks an average rate hike of 10.3 percent for the 20,172 policies written in Monroe County, according to information presented to the Florida Office of Insurance Regulation on Tuesday.

If the statewide rate plan is approved by the Office of Insurance Regulation, the average Monroe County annual premium for a Citizens policy would rise to $3,299 from the current $2,992.

Under Citizens' recommended rates for 2016, no county other than Monroe would have an average annual premium above $3,000.

"Every year we see the same thing. We've been overcharged since Day 1," Mel Montagne, chairman of the Fair Insurance Rates in Monroe group, said Thursday.

"This is what has spurred us on to do the [Reduce Insurance Premiums Project] study," Montagne said.

FIRM representatives Annalise Mannix and Montagne were the only public speakers at Tuesday's rate hearing, held by the Florida Office of Insurance Regulation at the Florida State Capitol building in Tallahassee.

The state insurance regulators can accept, modify or reject Citizens' requested rate increases. Written public comments will be accepted through Monday. A decision could be made within a month.

Miami-Dade County's 124,738 property policies, singled out in Citizens' presentation as a concern, would rise from the current average Dade premium of $2,382 to $2,529, second-highest in the state.

Most Citizens policy holders statewide will see a premium decrease, the company reported.

Citizens Property Insurance, established by the state in 2002 as an insurer of last resort after many private firms stopped writing Florida property policies, has worked to reduce its portfolio of policies from more than 1.4 million in 2011 to about 592,000 currently.

"Though fewer in number, the policies that remain with Citizens represent those in high-risk areas, older structures and mobile homes for which private insurance remains unavailable or prohibitively expensive," Citizens President Barry Gilway said in his presentation.

Gilway said claims for water-damage losses show "a disturbing rise...especially in Miami-Dade County."

John Rollins, a former Citizens executive now working as a catastrophe-loss consultant, said in prepared remarks, "The exception to the good news is in South Florida."

"In order to get the actuarially sound rates required by Florida law, communities that incur the losses must ultimately pay higher rates to fund the frequency and cost of those claims," Rollins said.

"We have looked deeply and cannot find evidence of construction issues or legal distinctions between South Florida and the rest of the state -- only the claims volume and participation by attorneys and public adjusters is what is different," Rollins said.

Insurance policies on Keys condominium associations, about 180 of them in Monroe County, also could rise more than 10 percent under the requested rate hike.

Mantagne said FIRM urged the state to recognize Monroe County's stricter building codes, restore premium credits for most types of shutters used in the Keys and lower rates for some higher Keys areas.

___

(c)2015 the Florida Keys Keynoter (Marathon, Fla.)

Visit the Florida Keys Keynoter (Marathon, Fla.) at www.keysnet.com

Distributed by Tribune Content Agency, LLC.