Officials with Citizens Property Insurance Corporation will outline what they say is the need for a double-digit rate hike on policyholders in the Florida Keys and across the state who renew their coverage in 2025, during an upcoming public hearing in Tallahassee.
On the other side, representatives with Fair Insurance Rates in Monroe, or FIRM, plan to attend the hearing on Thursday, Aug. 1 at the state capital’s Knott Building to push back against the hike.
“Citizens is not just the insurer of last resort for Monroe County, it is in most cases our only option,” reads a letter by FIRM.
State insurance regulators recently announced the hearing for Citizens’ rate filings, which detail average increases of 14% for personal lines policies for homeowners, condo unit owners, dwellings and mobile homes. The nine-member Citizens board of governors unanimously approved the rate hikes during a June 19 meeting.
Once the public hearing concludes next month, the state Office of Insurance Regulation (OIR) will decide whether to approve or deny Citizens’ request. If the request is granted, the new rates would take effect when people renew their policies in 2025.
Roughly 20,000 homes, duplexes, condo units and commercial properties in the Keys are covered through Citizens for storm damage. Those policies vary in coverage, for wind-only damage from hurricanes and tropical storms to coverage for various perils.
Per Citizens’ latest rate filings, wind-only homeowner policies could see an average increase of 16.6%. State law caps base rate hikes for primary owners to 14%. There’s no cap on secondary homeowners, however, meaning their rate hikes could be higher — upward of 50% excluding coverage changes and surcharges.
Wind-only coverage for condominium unit owners in Monroe County would increase by 20.9%. Condominiums are treated the same as commercial policies and have a higher rate cap.
Mel Montagne, FIRM president, will be joined at the Aug. 1 public hearing by FIRM vice president Joe Walsh. Montagne told Keys Weekly they plan to discuss the catastrophe models, reinsurance and getting Citizens back to insuring wind-only policies.
Citizens Insurance provides coverage to property owners who are in good faith and can’t obtain a policy through the private market. Citizens Insurance is required by law to charge rates sufficient to fund liabilities, all while complying with the glide path which caps rate increases at 14% in 2025.
Officials with Citizens Insurance say Citizens’ premium rates remain “well below” other private insurance companies providing coverage.
“This has been taken into account in developing the proposed capped rate indications,” Citizens stated in June.
But FIRM wants no Citizens rate increase for residents of Monroe County, who, since 2003 have contributed nearly $900 million in premiums over claims.
“Monroe County residents consistently shoulder the burden of fraud and Citizens’ inconsistencies in addressing these circumstances for the rest of the state,” FIRM’s letter reads.
Citizens’ $1 million coverage limit has caused many homes in Monroe County to be dropped from Citizens’ rolls with no other option, FIRM added.
Those who can’t attend the Aug. 1 public hearing in person can submit comments on the rate requests to the state insurance regulation office by 5 p.m. on Aug. 15. A link for public comment will be posted to OIR’s webpage.
