Citizens Property Insurance Corp., Florida's property insurer of last resort, is reportedly planning to impose significant rate hikes to cover losses from Hurricane Wilma.
Citizens is planning a two-step rate hike on policyholders to cover an estimated $950 million deficit, according to press reports in Florida.
The rate hike, affecting largely southern Florida, where half of its policies are written, would average 16 percent in the first round of increases beginning Feb. 1. The second increase, to come some time in 2006, is expected to be close to 50 percent.
According to the reports, depending on location, some residents could see increases close to 100 percent.
Citizens has nearly 800,000 policyholders in the state.
State offices were closed today for Veterans Day and officials were unavailable for comment.
Hurricane Wilma, which struck Florida on Oct. 24, is estimated to have cost the industry between $2 and $10 billion, according to catastrophe modelers, possibly making it one of the top 10 most expensive hurricanes in history.
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