The state Office of Insurance Regulation (OIR) said the approval will affect homeowners in certain counties differently, with increases in the range of 7.6 percent to 20 percent.

The new rates will take effect Dec. 1.

As of the end of March, Royal Palm had 110,723 policies in force to rank tenth among Florida residential insurers, according to OIR data.

The company posted a 2009 combined ratio of 116.2 and a net loss of $11.7 million, according to Highline Data, which is owned by Summit Business Media, which also owns National Underwriter.

Tower Hill Insurance Group became the company's managing general agent at the start of 2009. Royal Palm in 2007 entered into an agreement with Allstate to assume policies Allstate did not renew.

Recently, Allstate's Castle Key Insurance Company was granted an 18.7 percent rate increase and Castle Key Indemnity Company got a 17.8 percent increase. The Allstate subsidiaries were looking for increases of 33.3 percent and 17.9 percent, respectively.

Yesterday, the OIR held a rate hearing for the state-run Citizens Property Insurance Corp., proposing statewide average rate increases from 6.1 percent to 10.9 percent depending on the line of coverage. The insurer of last resort, which actually leads all Florida insurers with more than one million policies in force as of March, said sinkholes and fire claims were factors for the need for more rate but the insurer has been actuarially unsound, thanks to its rates being frozen for three years.

A law passed last year allows Citizens to increase rates but by no more than 10 percent per policy.