In article posted online in Florida Realtors on January 26, 2021 Jim Saunders writes, "Citizens Property Insurance Corp. could increase residential rates by an average of 7.2% this year, as the state-backed insurer contends with a flood of new policies and troubles in the private insurance market. Meanwhile, the chairman of the Senate Banking and Insurance Committee on Monday filed a potentially far-reaching bill that seeks to reduce attorney fees and litigation in property-insurance disputes and limit the costs of claims for roof damage." These proposed rate changes would vary depending on many different factors such as type of policy and location of each policy. Policy changes would differ based on single family home, condominiums, or mobile homes.
When regulators approved last year double-digit rate increases for private insurers, the Citizens rate plan was given the go ahead. According to Senate Banking and Insurance Chairman Jim Boyd, R-Bradenton," We want to make certain that Floridians have access to property insurance that is both reliable and affordable,” Boyd, who runs an insurance agency, said in a prepared statement. “Right now we have a situation in our state where homeowners are paying more for their property insurance, and yet insurance companies are suffering massive losses.”
Citizens was originally created as a last resort for the insured and also more available to homeowners than private insurance.
The new plan is set to take effect in August if the state approval goes through.
If you are in the market for a new home or are looking to sell your current property, please reach out to one of our realtors at Oceans Luxury Realty as they are happy to assist you!