Rate Increases for Citizens
Source: PIA of Florida, Inc.
This afternoon OIR held a public hearing on proposed insurance rate increases by Citizens Property Insurance Corporation (CPIC) for its Florida homeowners, mobile homeowners, HRA homeowners and HRA mobile homeowners programs. The effective date of the proposed rate increases for the HRA filings is Feb. 1, 2011 for new and renewal business. All other filings being discussed today will be effective Jan. 1, 2011.
The proposed rate increases included in this filing are as follows: (statewide averages)
- Personal Lines Account - 9.8%
- Homeowners HRA - 10.9%
- Mobile Home Personal Lines Account - 7.4%
- Mobile Homeowners HRA - 9.4%
- Mobile Home Physical Damage HRA - 8.5%
- Mobile Home Physical damage Personal Lines Account - 6.1%
It is clear that Citizens, like many other insurers, are realizing greater than anticipated losses from sinkhole coverage. According to CIPC, 2009 accident year the sinkhole portion of the homeowners premium accounted for $19.6 million in revenue and $97 million in losses. As you may recall, the topic of sinkhole coverage, and the public adjuster issue, were both major topics of discussion during the last legislative session. In preparation of this issue coming up again during the 2011 Legislative Session, OIR issued a data call on August 24, 2010 to collect information that could be useful to developing a strategy to address this cost driver.
To view OIR’s press release on the data call please click on the link below: