Rate hike being recommended for Florida insurer

Jan 22, 2009

Tallahassee Democrat--January 22, 2009

JACKSONVILLE, Fla. (AP) — A task force is recommending that Citizens Property Insurance be allowed to end a three-year rate freeze and start aggressively hiking homeowner rates.

The task force voted earlier this month to recommend that the Legislature caps Citizens’ annual rate increase to 10 percent on average statewide. It was meeting again Thursday in Jacksonville to finalize its report. It also suggests an annual cap of 15 percent for any given territory and 20 percent for any single policy.

Task force members are urging the state for Citizens to begin raising rates in January 2010.

Citizens is the state’s largest insurer with 1.1 million policies and $412 billion in exposure.

The task force must submit a report to the Legislature by Jan. 31.