Looming decision could boost South Florida annual home insurance premiums by $700

Citizens Property Insurance policy holders in South Florida could see their annual premiums rise by an average of $700 or more next year if regulators approve in the next few weeks the new rates requested by the state-run company deemed as the state's insurer of last resort.

The Florida Office of Insurance Regulation is expected to decide soon on a request made by Citizens to be allowed to increase its rates an average by 14% starting in January, a hike the company says is needed to offset the rising costs of non-weather-related losses, reinsurance and litigation.

If approved, the decision would extend a trend that had already increased the costs of insurance premiums by 300% in the last five years.

Florida Insurance Commissioner Michael Yaworsky has said the office of regulation is looking at the request and "taking the time to get it right so that consumers don't have to pay more than is absolutely necessary." While there is no set timeline for a decision, one is likely to be made as the hurricane season comes to a close at the end of November.

The request was made before three hurricanes - Debby, Helene and Milton - hit the state this year. While there are no solid estimates of the damages caused by these storms in the state, experts say they are likely to add up to several billion dollars.

Under the Citizens' proposal, rates for its HO-3 home insurance policy in Miami-Dade County would go up by 13.5% to an average of $5,804 per year from its current level of $5,113, for an increase of $691. For policy holders in Broward the rate would also increase in the same proportion to $6,112 from $5,385, boosting the yearly bill by $727.

HO-3 home policies are the most common purchased in the state. They cover most damages, including those caused by fire, theft and hurricanes. In Florida, this often means that homeowners in designated flood zones must obtain additional flood insurance because this type of damage is not covered by HO-3 policies.

Broward and Miami Dade have the highest numbers of Citizens policy holders, around 350,000 combined, according to company figures. The company currently has around 1.04 million policies in the state.

Palm Beach HO-3 insurance policies would see a 13.8% boost, going up to $4,324 from its current level of $3,800, a $524 increase. Monroe County, home of the Florida Keys, would see the highest increase in the state, with premiums rising by 16.6%, increasing an average policy $914 a year, to $6,416 from the current $5,502.

The cost of other types of policies that allow homeowners to cut down on their expenses by offering less extensive coverage or that are designed for specific types of insurance would also rise under the Citizens proposal.

These are:

Wind-only HW2 policies, which only cover damages caused by wind and hail storms. These would go up by 13.3% in MIami-Dade, 14.1% in Broward and 16% in Monroe.

Multi-peril HO6 policies, which cover the interior of a condo unit, personal belongings and personal liability. These would go up by 14.2% in Miami-Dade, 14.3% in Broward and 20.8% in Monroe.

Wind-only HW6 policies, which protects the property of condominium unit owners from damage caused by wind and hail. These would go up by 14.2% in Miami-Dade, 14.3% in Broward and 20.9% in Monroe.

Multi-peril DP1 and DP3, barebones or limited policies that normally cover the perils specifically listed, as opposed to the broader coverage of HO-3. Their premiums would go up by 14.4% in Miami-Dade, 13.8% in Broward and 14.0% in Monroe.

Wind-only DW2 policies, which cover damages to homes and attached features from wind and hail storms but exclude other perils. These would go up by 15.7% in Miami-Dade, 14.1% in Broward and 17.5% in Monroe. The "D" stands for Dwellings. This policy differs from the HW2 (H for Home) in that its coverage is limited to the main building and attached structures, such as a garage, and not cover damages to the surrounding land or standalone structures.

Multi-peril MHO3 and MDP1 policies, which cover prefabricated homes. MHO3 covers the home, personal property, and other structures on the property, but it must serve as the owner's primary residence. These policies typically cover risks like fire, lightning, vandalism, water damage, theft, wind, and personal liability. MDP1 also cover prefabricated homes, but are meant for rental properties and landlords and its coverage is more basic than traditional homeowner policies. Their premiums would go up by 14% in Miami-Dade, 23.4% in Broward and 21.2% in Monroe.

Wind-only MW2 and MD1 policies, which cover mobile and prefabricated homes from wind damage. Their premiums would increase by 13.4% in Miami-Dade and Broward and 21.1% in Monroe.

Multi-peril H04 policies, also known as renter's insurance policies, would go up by 11.8% in Miami-Dade, 12.2% in Broward and 13% in Monroe.

Wind-only HW4 policies, which protects renters only from damages caused by wind, would go up by 18% in Miami-Dade, 19.3% in Broward and 19.3% in Monroe.

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