Citizen Expected to Increase Florida Homeowners Insurance Rates
Citizens Increasing Home Insurance Rates
Residents of the Sunshine state who use the state created insurance company Citizen Property Insurance to insure their property will be seeing on average a 6.6 percent increase in their multi-peril coverage next year. In some areas, the increase could be much higher.
The rate increase has been pushed back three months to May 1st due to the damages caused Hurricane Irma. The rate increase request was supposed to be reviewed and approved in September but was delayed due to the damage that was caused by the first major hurricane to hit Florida since 2005.
Rates changes will vary by the area that your property is located but will average 6.6 percent across the state. Some areas may receive a rate decrease while the more populated areas, such as Palm Beach, Broward and Miami-Dade may see increases of 10 percent or more.
Residents of the Monroe County in the Florida Keys won’t see any increases despite being the area that was hardest hit by Irma. Instead, insurance regulators have directed Citizens to analyze the lessons learned from this particular storm and the damage it caused.
In a press release, Chris Gardner, chairman of Citizens’ board of governors explained the rising rates, “The Office of Insurance Regulation’s 2018 rate order balances the needs of policyholders facing challenges from Irma with its responsibility to maintain a healthy property insurance market.”
Citizens is an insurance company that was created by Florida state legislators in order to provide an insurer of last resort for Floridians that cannot get a policy from a private insurance company which is often the case for homeowners who live on the coast or in South Florida.
Citizens has blamed the increases on excessive claims, assignment of benefits fraud and the resulting lawsuits. Citizens executives have warned of yearly increases in the 10 percent range if legislators do not address the insurance fraud that is currently plaguing Florida.
A Few Details
As of September 30th, Citizens had 452,394 policies in force across the state of Florida. Here are a few details on how the new rates will affect different types of homeowners:
- The majority of Citizens 92,891 multiperil policyholders in Miami-Dade, Palm Beach and Broward counties will see an increase of 10 percent or more starting on May 1st.
- Across the state, condo owners will see an increase of 7.6 percent for a multiperil policy and a 5.7 percent increase for a wind-only policy.
- Mobile home policyholders on the other hand can expect a 3.9 percent bump for a multiperil policy and a whopping 9.8 percent increase for wind-only.
- Renters are getting a break as the cost of renters insurance will drop roughly 13 percent for multiperil policies and 4.4 percent for wind-only.
- Homeowners who rent their properties out and carry a Dwelling Fire policy will see an average increase of 5.2 percent on their multiperil policies and 4.6 percent jump on wind-only policies.
Final Tips
If your homeowner rates are going up there are a few things you can do to keep your premium affordable. Here are a few tips to lower your home insurance costs:
- Keep Shopping: Shop your policy on a regular basis. Insurers rate risk differently so premium quotes can vary dramatically. Shop your coverage on a yearly basis at a minimum. At HomeInsuranceKing.com, we can easily compare up to 30 different companies for the state of Florida all in one place. This helps you review multiple rates and coverage options without the hassle of talking to a ton of different companies. We help you compare and save right here on your Florida homeowners insurance rates.
- Deductibles Matter: Raising your deductible will absolutely lower your premium but always pick a deductible that you can easily afford in case you have to make a claim on your policy. Double your deductible if possible and expect your premium to drop roughly 20 percent.
- Discounts: Insurers offer a wide variety of discounts and the more discounts you receive, the lower your premium will end up being. Ask your agent to perform a discount review to make sure you are getting all available discounts.
- Upgrade Your House: Replacing your roof with wind resistant materials or adding storm shutters can result in a discount. Ask your agent about home upgrades that would result in a discount.