Florida’s Citizens Property Insurance Corp. is reminding agents and policyholders that rates for most commercial and residential policies will rise a bit each year, starting Feb. 1, 2022.
The change to the insurer’s glidepath, as it’s known, was authorized by Senate Bill 76, which was approved earlier this year to address a number of issues in Florida’s troubled property insurance market. Citizens’ rate increases had been capped at 10% per year but will now climb 1% per year until the cap reaches 15%, Citizens said in a bulletin to agents.
“The rate increase varies by line, product type and territory,” the Dec. 3 bulletin reads. “Individual rate changes exclude coverage changes, mitigation adjustments, rate changes for Sinkhole Loss coverage, assessments and surcharges, and a required rapid cash build-up provision for the Florida Hurricane Catastrophe Fund, if applicable.
Citizens, the state-backed insurer of last resort, also will require four-point inspections on residential properties that are more than 20 years old. Until now, the inspections were required only for homes more than 30 years old.
The changes are part of Citizens’ plan to reduce its exposure and number of policyholders. The insurer has seen rapid growth in the past two years as private insurance carriers in Florida have become insolvent, have pulled out of the state, non-renewed policies, and have raised rates significantly.
Topics Florida
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