Florida’s Citizens Property Insurance Board Approves 2015 Personal Residential Rate Reduction
Jun 25, 2014
At its meeting today, June 25, 2014, Florida’s Citizens Property Insurance Corporation’s (“Citizens”) Board of Governors (“Board”) approved a 2015 rate package that reflects an overall average 2.9 percent decrease for personal residential policyholders statewide.
Single-family homeowners will see an average drop of 3.2 percent for the coming year under a slate of rate recommendations that must now be approved by the Florida Office of Insurance Regulation. Overall, Citizens’ personal and commercial rates will decrease by one percent.
Sinkhole rates in Pasco, Hillsborough and Pinellas Counties will remain the same for 2015. Sinkhole policyholders in Hernando County, which continues to have the highest loss ratio in the state, will see a 10 percent rate increase. Rate increases of non-sinkhole coverage are capped at 10 percent by law. This cap does not include statutorily required payments to build up cash reserves in the Florida Hurricane Catastrophe Fund.
Following eight hurricane seasons with no major storms befalling Florida, five years of rate adjustments under the statutory “glide path” and historically low reinsurance costs, nearly seven in 10 Citizens personal lines policyholders will see rate reductions in 2015, with 58 percent of customers receiving reductions of more than five percent.
“The 2015 rates reflect our best actuarial estimate of Citizens’ rate needs for the coming year,” said Board Chairman Chris Gardner. “Following five years of prudent rate filings under the glide path, actuarial estimates now indicate rate reductions are in order for a significant number of our policyholders.”
Citizens’ statewide average homeowners multi-peril premium proposed for 2015 is $2,379, down from an average of $2,538 in 2014.
“The rates approved today by the Board indicate that Citizens is moving in the right direction,” said Citizens President and CEO Barry Gilway. “They also are a clear sign that Citizens and all Florida property owners will see clear benefits from improving financial stability in the private insurance market.”
Additional information and answers to common questions about Citizens’ rates and premiums are included in Citizens 2015 Rates Frequently Asked Questions. Also included in the kit are several documents that provide useful information about Citizens’ costs and projected rate need for 2015. To view the information package, click here.
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