In the state of Florida, homeowners looking for coverage through state-backed home insurance provider are expected to have their rates raised by 3.6%. This is based on the state regulators decision for a nation-wide average increase.
With that, homeowners who pay for the multi-peril premiums will expect a 4.4% increase (or approximately $111 for each policy). This is part of the usual hike as this increase will take effect in 2016 January. On the other hand, those with wind-only insurance policies can see a 10.5% average increase (or approximately $265 for each policy), as their rates take effect on February 1st.
Citizens Property Insurance Corporation filed for 7.3% state-wide average raise for the combined multi-peril and wind-only rates. Concerned regulators have reduced it to 6.3% which takes in the base rate. It also includes the sinkhole coverage and Florida Hurricane Catastrophe Fund build-up cash factor reaching to 4.87%. This is considered as the 4th successive year where homeowner’s rates have increased.
Aside from these statewide rates increases, 3 counties also got the approval for the rates raise in sinkholes. During the public hearing, officials told that reforms passed on in 2011 by the lawmakers did well in decreasing sinkhole losses with 52% estimate. Regulators put a 50% cap in the Hillsborough County and a 20% cap in the sinkhole rate raise for the counties Hernando and Pasco.
Coverage for sinkhole in these counties has the significant increases. For instance, the normal premium in Paso County for the sinkhole coverage amounts to $1,829. With the new rates, such number will increase to $2,195 or $366 per insurance policy.
In Hernando County, homeowners will get $338 average increase premium with the total of $2,026. On the other hand, Hillsborough County has the increase average of $191 with a total of $574. In other 64 counties of the state, there’s no other sinkhole rate increase on policies for multi-peril policies.
Another business line expected to have raise is in Citizens dwelling and fire multi-peril rates and dwelling and fire-wind only rates. Those regulators who made the 10% cap to take effect, applied the full rates on those insurance policies.
According to Barry Gilway, President of Citizens, the current rates are aimed at assisting the insurance provider in attaining its objective of reaching sound rates. This is a revision goal designed for premiums, reserves and other values.
To get additional information on homeowners rates increase in Florida, please contact us at DMG Insurance and Financial Services, Inc. (http://www.dmginsurance.com) at 543 N State Road 7, STE 106, Royal Palm Beach EL, 33411, phone 561 422 7071, Fax 561 422 7072.