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Citizens Property Insurance Corp. Considers Double-Digit Rate Hike Proposal Amid Policy Growth

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Citizens Property Insurance Corp. Considers Double-Digit Rate Hike Proposal Amid Policy Growth

Tallahassee, FL — The future financial landscape for Florida homeowners hangs in the balance as the Citizens Property Insurance Corp. Board of Governors prepares to deliberate on a significant rate increase proposal scheduled for discussion this Wednesday.

According to details released by Citizens late Tuesday, the proposed hike could see premiums surge by an average of 13.5 percent for homeowners with standard policies, and an even steeper 14.2 percent for condominium-unit owners, starting in 2025. This move, if approved, would encompass all “personal lines” policies, affecting homeowners, condo-unit owners, renters, and mobile-home owners alike, with an average increase of 14 percent across these categories.

The proposal marks a proactive measure by Citizens, the state’s largest insurer, to shore up its financial health amid a burgeoning policyholder base. Recent figures disclosed by the insurer show a steady increase in policies, reaching 1,202,696 as of the latest count, up from 1,198,265 just a week earlier and 1,193,484 two weeks prior.

Citizens, initially established as an insurer of last resort, has expanded its role significantly in recent years as private insurers grappled with financial instability, prompting them to shed policies and escalate premiums. At its peak in fall 2023, Citizens held as many as 1.412 million policies before initiating a strategic “depopulation” effort aimed at transferring policies back to the private sector.

The fate of the proposed rate hikes ultimately hinges on the approval of the Board of Governors and subsequent endorsement by the state Office of Insurance Regulation. Stakeholders across Florida, particularly homeowners and condominium residents, await the outcome with keen interest as the debate unfolds on Wednesday.