Citizens Rate Hike: Homeowners Still Face Steep Increases, Despite Cut

Citizens Property Insurance Corporation, Florida's largest state-backed home insurer, has slightly reduced its proposed rate increases for 2024, but many homeowners will still see double-digit hikes.

Citizens originally proposed an average rate increase of 17.1% for homeowners with multi-peril policies. However, the Florida Office of Insurance Regulation (OIR) ordered Citizens to reduce its proposed rate hike after finding that the company had overstated its losses.

Citizens Rate Hike: Homeowners Still Face Steep Increases, Despite Cut

As a result, Citizens has reduced its proposed rate increase to an average of 11.5% for homeowners with multi-peril policies. However, the rate hike will vary depending on the homeowner's location and policy details. Some homeowners may see rate increases of more than 20%.

The OIR said that Citizens' revised rate proposal is "more reasonable" and "better reflects the company's financial condition." However, the OIR also said that Citizens needs to do more to reduce its costs and improve its efficiency.

Citizens has been under increasing pressure to reduce its rates in recent months. The company has seen a significant increase in claims in recent years, due to hurricanes and other natural disasters. As a result, Citizens has been forced to raise its rates to cover its losses.

However, many homeowners have complained that Citizens' rates are too high. Some homeowners have even been forced to drop their Citizens coverage and find coverage from other insurers.

The OIR has been working with Citizens to develop a plan to reduce rates and improve the company's financial condition. The OIR has proposed a number of reforms, including changes to the way Citizens sets its rates and the way it handles claims.

It is unclear when or if Citizens will implement the OIR's proposed reforms. However, the OIR has said that it is committed to working with Citizens to find ways to reduce rates and improve the company's financial condition.

What Homeowners Can Do

Homeowners who are facing double-digit rate increases from Citizens should consider shopping around for other insurers. There are a number of private insurers that offer coverage in Florida. Homeowners can compare rates and coverage options from different insurers to find the best deal.

Homeowners can also take steps to reduce their insurance premiums. For example, homeowners can install windstorm mitigation features, such as hurricane shutters and impact-resistant windows. Homeowners can also raise their deductibles.

Homeowners who are struggling to afford their insurance premiums should contact Citizens to see if they qualify for financial assistance. Citizens offers a number of financial assistance programs to low-income homeowners and homeowners with disabilities.