Florida’s Citizens Property Insurance to Increase Rates

Florida’s Citizens Property Insurance to Increase Rates

State Owen, reinsurance has recently received permission to increase their rates across the entire state property insurance coverage, in some places by as much as 10%. The average rate increase across the state will be 5.4% with coastal homes paying 7.3% more than a large number of inland homes paying 10% more.

This rate increase will affect approximately one million Florida reside who rely upon Citizens for their home coverage. While previously Citizens was seen as a lower end, last resort option for most home owners today have become the largest provider of home insurance in Florida. This rate increase also comes the same time that Citizens is privatizing many of contracts that they currently hold to private insurance provider organizations in order to minimize the potential for the state government to have funding problems should a disaster occur.

While this may come as a surprise to many Florida residents as the Florida peninsula has not had any major disaster since tropical storm Wilma in 2005 the main reason for the rate increase is not to recuperate losses incurred by some recent damage but to spread out the financial burden disasters caused over a number of years. That way Citizens can be better able to provide for its customers in times of need and provide claims payouts should disasters occur.

If you’re a Citizens customer and disagree with this rate increase there are always a number of options available to you. One of the