Citizens board approves rate increases

The board of governors of state-backed Citizens Property Insurance Corporation approved rate increases for personal lines policyholders.

Citizens was created in 2002 by the Florida Legislature as a not-for-profit alternative insurer, whose public purpose is to provide insurance to, and serve the needs of, property owners who cannot find coverage in the private insurance market.

Board members recommended a 5.3 percent state-wide increase for personal lines policyholders – homeowners, condominium unit owners and renters – with most increases concentrated in three South Florida counties where water losses, assignment of benefits abuse and litigation are disproportionately severe.

The move reflects rising non-weather water losses, assignment of benefits abuse and out-of-control litigation that, left unchecked, will force rate hikes for years to come, the company said in a June 20 statement.

Board members also approved a series of policy changes aimed at reducing claims costs for non-weather water losses that have been pushing rates higher for South Florida customers over the last few years.

“These proposed rate increases and product changes are critical for Citizens’ efforts to bring some relief to a market that is being made increasingly expensive by unnecessary litigation and out-of-control water loss claims,” said Chris Gardner, chairman of the Citizens board of governors. “Unfortunately, we are making it more expensive for many of our customers to own a home.”

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