What proposed Citizens insurance rate hike means for homeowners
TALLAHASSEE, Fla. - The Citizens Property Insurance Corp. Board of Governors on Wednesday will consider a plan that would lead to double-digit rate increases for homeowners across the state.
The plan would lead to a 12 percent increase, effective Nov. 1, for people whose homes are their primary residences and who have what are known as "multi-peril" policies — the most common type of coverage.
The increase would go to 13 percent for such customers effective Jan. 1. Those increases are the maximum allowed by a state law that caps annual hikes in Citizens’ rates.
READ: Florida Senate passes property insurance overhaul
During a December special legislative session, however, the Legislature approved allowing the state-backed Citizens to increase rates by as much as 50 percent for homes that are not primary residences.
The plan would lead to many owners of such homes facing increases higher than 12 or 13 percent. If backed Wednesday by the Board of Governors, the plan would need approval from the state Office of Insurance Regulation before it could take effect.