Citizens Property Insurance asks for 14% rate hike

Citizens was created by the Florida Legislature in August 2002 as a not-for-profit, tax-exempt, government entity to provide property insurance to eligible Florida property owners unable to find insurance coverage in the private market.

According to the Insurance Information Institute, Florida has the highest average property insurance premiums in the nation-$4,231 per year, nearly triple the national average.

Since 2022, 20 insurance companies have either declared bankruptcy or stopped offering new policies in Florida.

Florida legislators passed SB 2-A in December of 2022 during a special session. The bill was signed by Governor Ron DeSantis on Dec.

16. The bill eliminates one-way attorney fees for property insurance claims, reduces timelines for insurers to get payments out the door, enhances the Office of Insurance Regulation's ability to complete market conduct examinations of property insurers following a hurricane.

Democratic Rep.

Dotie Joseph proposed an amendment to SB 2-A which would have frozen property insurance rates for one year, but the amendment failed on an 84-32 vote.

"The issues in Florida's property insurance market did not occur overnight," said Gov. DeSantis after signing SB 2-A, "and they will not be solved overnight." "Today's rate request reflects the need for Citizens to continue efforts to charge adequate rates while taking into account recent legislative reforms that have already reduced projected costs by $900 million and will stabilize the market over time," said Tim Cerio, Citizens' President/CEO and Executive Director.

The Florida Office of Insurance Regulation will make a final decision on the Citizens' rate increase by June 22.