Today, the Citizens Property Insurance Corporation’s Board of Governors will be asked to approve a 2019 rate package that reflects the impact of skyrocketing nonweather related water loss claims in South Florida, a troubling trend that appears to be spreading to other parts of the state.
Board members will be asked to recommend rates for 2019 that call for a statewide average increase of 7.9 percent for personal lines policyholders – homeowners, condominium owners and renters.
Under the proposed rates, inland homeowners with multiperil policies would see an average increase of 8.3 percent, while homeowners along the coast would see rates climb by an average of 9.5 percent.
Affordable reinsurance and depopulation efforts over the past several years have reduced Citizens’ policy count from nearly 1.5 million in 2012 to approximately 443,000 as of May 2018, a reduction that has helped provide the state-run insurer the ability to pay claims following a 1-in-100 year storm and a second 1-in-41 year event without having to levy assessments.
Citizens is required by law to recommend rates that are actuarially sound, while complying with a legislative glide path that caps rate increases at 10 percent, excluding coverage changes and surcharges. In July, Citizens will submit its 2019 recommended rates to the Office of Insurance Regulation, which must establish rates for Citizens before they take effect.
Citizens has prepared a 2019 rate kit to provide members of the press with information about its 2019 rate filing, including county-by-county estimates for particular policy types. Additional information and answers to common questions about Citizens’ rates and premiums are included in Citizens 2019 Rates Frequently Asked Questions. The kit also includes additional information about Citizens’ costs and projected rate need for 2019.