At its October 12 meeting, the board of governors of Citizens Property Insurance Corp. ratified rate increases recently approved by the Florida Office of Insurance Regulation. The rates will increase a statewide average of 6.2 percent and have a sinkhole cap of 32.8 percent. The new rates on homeowners' and dwelling fire policies take effect on Jan. 1, 2012, for new and renewal multi-peril business, and Feb. 1, 2012, for new and renewal wind-only business.
In addition to ratifying the rates, the board also voted unanimously not to pursue a phase-in schedule for sinkhole rates that it approved at a September 12 meeting. The board reversed its position on the phase-in because the rates ultimately approved by the OIR were substantially lower than what the board sought.
This summer, amid its 13 other filings, Citizens' sinkhole rate increase requests ranged from zero to 2,688 percent, for an overall average rate increase of 447 percent. On September 12, the board voted to cap rate hikes for sinkhole coverage at 50 percent in 2012 and then phase in future increases over the next several years. It also approved a proviso that allowed it to review that implementation schedule if the OIR approved significantly different rates.
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