Citizens to Agents: Rates on Certain Condo Policies To Increase by 20 Percent on November 1, 2009
Oct 2, 2009
Citizens Property Insurance Corporation (“Citizens”) issued an informational bulletin to agents on October 1, 2009 advising that, since rates for condominium buildings valued in excess of $10 million in both the Commercial Residential Wind-Only and Commercial Residential Multi-Peril programs are not subject to traditional rate review or approval by the Florida Office of Insurance Regulation and thus not subject to the mandated 10 percent rate cap, that premiums for these types of policies and their renewals would be increasing by an average of 20 percent beginning November 1, 2009.
To view Citizens’ notice to agents, click here.
Media coverage of Citizens notice was posted in the Sun-Sentinel “House Keys” Blog by Julie Patel reprinted below.
Should you have any questions or comments, please contact Colodny Fass.
Condo insurance rates expected to soar
By Julie Patel, Sun-Sentinel
October 1, 2009
Insurance costs for major high-rise condos are expected to rise next year. That’s because Citizens Property Insurance told insurance agents today that it is increasing by an average of 20 percent rates for condominium buildings that cost more than $10 million to replace. Insurance for condo buildings is not subject to the rate freeze legislators imposed on most Citizens’ policies the past few years, nor is it subject to the 10 percent cap on rate increases for next year. Evan Glassman, an insurance agent who specializes in high rise condos, said most of the state’s roughly 1,400 high-rise condos worth more than $10 million are insured by Citizens. “I’m sure this is going to be difficult for a lot of associations in these economic times,” said Glassman, who is with Advanced Insurance Underwriters in Hollywood. “Fortunately there are several private carriers that are now competing in this marketplace, and many associations have options to leave Citizens for the first time in years.” “Citizens is required by law to charge actuarially sound rates,” said the notice from Citizens. Insurance for condo buildings is “not subject to traditional rate review or approval by the Office of Insurance Regulation.”
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