Policy holders with Citizen Insurance will likely see a double digit cost increase in 2013. According to the Miami Herald, the Office of Insurance Regulation approved “a 10.8 percent increase on homeowners’ policies and an 8.8 percent increase on dwelling fire rates. Homeowners with sinkhole coverage will see an increase of 21.4 percent on their bills and those with dwelling fire policies who want sinkhole coverage will get a 44.8 percent increase. Most take effect Jan. 1. Rates for wind-only policies take effect Feb. 1.”
According to the article, the state-backed insurer has been increasing rates to become more in line with private insurers in hopes of decreasing its number of policy holders. Citizen’s Insurance was developed as the insurer of last resort but is presently insuring over 1.4 million Florida customers.
Some customers will be outright cancelled by Citizens this week. The Miami Herald reported that “regulators… approved another 60,000 policies for removal from Citizens’ and earlier approved 150,000 policies for acquisition by four Florida-based companies beginning in November. Citizens’ policyholders were to be notified of the take-out request Oct. 1, and will have 30 days to accept or reject the offer. If policyholders do not respond, they’ll be “assumed” by a private sector company.”
Have you received your pink slip? Are you seeing red?