On September 20, 2011, the Florida Office of Insurance Regulation (“FOIR”) issued an order on the proposed rate increases by Citizens Property Insurance Corporation (“Citizens”) for homeowners, dwelling fire, and sinkhole coverage. The most controversial part of the rate increase request surrounded the proposed increases to sinkhole coverage, an optional coverage that is sometimes required by mortgage lenders. In an effort to achieve more actuarially supportable rates, Citizens proposed sinkhole portion rate increases of 447% for homeowners policies and 631.5% for dwelling fire policies. After a public hearing was held on the proposal, the FOIR decided to establish rates increases of 32.8% and 96.5% respectively. The new rates will be effective on January 1, 2012 for new and renewal multi-peril business, and February 1, 2012 for new and renewal wind-only business.
To view the order, click here.
