Florida: Brace Yourself for Double-Digit Rate Increases from Citizens Property Insurance | Opportunity For All Floridians

Florida: Brace Yourself for Double-Digit Rate Increases from Citizens Property Insurance

In March of 2023, the board of governors of Citizens Property Insurance, Florida’s property insurer of last resort, approved a statewide rate increase for Florida policyholders. The average statewide increase: 14.2%

Florida homeowners and condominium owners need to prepare themselves for changes in insurance rates, which will go into effect in November of this year. This blog post will simplify the information and provide key takeaways from these rate recommendations, helping you understand how they may impact you.

Statewide Average Increase:

The Board members have recommended rates for 2023 that call for a statewide average increase of 14.2% for all personal lines policies, which include homeowners, condominium units, dwellings, renters, and mobile homes. It’s important to note that individual premiums may increase by more than that due to higher replacement costs resulting from inflation in the construction market.


Homeowner and Condo Owner Policy Rates:

The rates for homeowner policies are expected to increase by an average of 13.9%, while condo owners would see an average increase of 14.6%. If approved by the Office of Insurance Regulation, these rates would go into effect for new and renewal personal residential policies beginning November 1, 2023.


Citizens’ Perspective:

Carlos Beruff, the Chairman of Citizens, stated, “The Legislature has given us a directive and some valuable tools to return Citizens to its role as the state’s insurer of last resort. These proposed rates are a step in that direction.” Tim Cerio, Citizens’ President/CEO and Executive Director, acknowledged the challenges faced by policyholders, saying, “No one wants their rates to go up. We completely understand that. But the fact is that Citizens rates remain actuarially unsound and artificially low. This inadequacy is unsustainable and heightens the risk of assessments on all Florida insurance consumers.”

Market Comparison:

An analysis conducted in November 2022 found that Citizens’ statewide average premium for homeowners’ multiperil rates was 44% below the premiums charged by nine private companies representing 24% of the market.


Legislative Impact:

Explicit adjustments were made in the 2023 policy rate recommendations to account for the anticipated savings from the passage of SB 2-A by the Florida Legislature in December 2022, which lowered Citizens’ uncapped rate need by 36.8%. After considering these savings, Citizens proposed rates for personal lines policies remain 57.9% below the uncapped rate needed to be actuarially sound.


Legal Requirements and Glide Path:

Citizens is required by law to recommend actuarially sound rates while complying with a legislative glide path that caps individual rate increases at 12% in 2023 and 13% in 2024 for primary residences, excluding coverage changes and surcharges. The 2023 rate recommendations also take into account legislative reforms passed in December 2022, including a provision to allow increases for non-primary residences of up to 50%.

Florida homeowners and condominium owners should be prepared for increases in insurance premiums as a result of the 2023 rate recommendations from Citizens Property Insurance Corporation. While no one wants their rates to go up, it’s important to understand that Citizens’ rates are currently actuarially unsound and artificially low. The proposed rates are aimed at addressing this issue and ensuring the sustainability of the insurance market. By staying informed and reviewing available resources, such as county-by-county estimates for specific policy types, you can make well-informed decisions regarding your insurance coverage.

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