TALLAHASSEE, Fla. — More than a million Floridians could face a major increase in the price of their homeowners insurance.
Citizens Property Insurance proposed raising its rates by about 14% to reduce the amount of insurance holders by the end of the year — which could increase average prices for policy holders by more than $500.
According to information from the Florida Office of Insurance Regulation, a public rate hearing was held on Aug. 1, and state officials will decide "to either approve or disapprove the rate being requested based on whether the company has provided adequate support for the request."
A statement from the Florida Office of Insurance Regulation said the decision and final order was expected to be published Monday, but an announcement has yet to be handed down.
Some insurance companies left the state as rates soared, forcing people to use Citizens — the state insurer of last resort.
The company says the new rate would be within 20% of private carriers, making some people no longer eligible for Citizens, which would reduce financial risks.
According to the National Association of Realtors, the state has the highest rates in the nation at nearly $11,000 a year — that’s four times the national average.
“Secondarily, as those prospective homeowners are facing an even tighter challenge, you look at, say, pre-pandemic monthly costs have more than doubled in just about any fashion. So this only exacerbates the challenges that prospective homeowners face,” said Colin Rice, a Land Use and Real Estate Attorney with Older Lundy.
The Citizens’ governing board passed the recommendation in June, and it now needs approval by state regulations.
If approved, the rates would go into effect for renewal policies after Jan. 1, 2025.