The OIR used a different methodology, resulting in the approval of a higher rate, she said. This rate better reflects the prospective costs Citizens will bear in 2011, Ms. Benner said.

According to the order, rates will go into effect Jan. 1 for new and renewal multiperil business and Feb. 1 for wind-only business.

Citizens Property Insurance Corp. in 2009 was given the go-ahead by law to begin increasing rates in order to become more actuarially sound, but premium increases are capped at 10 percent per policyholder. Prior to the 2009 law, Citizens' rates were frozen for three years.

Without the cap, Citizens said it would be seeking an average rate increase statewide of 58 percent for multiperil and wind-only policies to be actuarial sound.

According to an executive summary from a July 19 Citizens committee meeting, actuaries included non-catastrophe losses and sinkhole losses into the rates. Within the rate approval order, the OIR said Citizens must inspect homes for sinkholes on any new business or policyholder request to add sinkhole coverage.

As of Aug. 31, Citizens has more than 1.2 million policies in-force, the most in Florida. State Farm had about 746,430 policies in-force as of March 31.