WEST PALM BEACH, Fla. – WPTV is following the latest developments regarding a demand for a 14% premium increase from Citizens Property Insurance – Florida’s insurer of last resort.
A decision was expected this week, but no announcement has been made yet.
WPTV reporter Matt Sczesny stays on the ball, looking for answers as to when a decision will be made.
The 14% increase would be the largest Citizens has ever requested and would equate to an estimated $670 increase for an annual policy in Palm Beach County.
Four weeks ago, government regulators held a hearing on the request for an interest rate increase, the decision should be made on August 26.
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WPTV asked Mark Friedlander of the Insurance Information Institute about the delay and what might happen.
“The Insurance Regulatory Commission’s decision can have basically two consequences,” Friedlander said. “One is to fight back and ask them to submit new data and downgrade it or accept it. Historically, the Insurance Regulatory Commission’s office usually asks citizens to make adjustments.”
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This could delay a decision, but it could also mean that the tax increase for Citizens will ultimately be less than the 14 percent they demanded.
Citizens, which currently has 1.2 million insurance policies in place, is trying to bring its rates more in line with private insurers and remove more policyholders from its books.
“They don’t want to compete with the private market,” Friedlander said. “They want to be an insurer of last resort, not the best choice just because the price is lower.”
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Citizen’s new rates would affect policies renewed after January 1.
We have been told that it is possible that the regulators may need another two months to process this request.
Matt Sczesny is committed every day to helping you find solutions to the Florida insurance collapse. If you have a question or comment about homeowners insurance, feel free to contact him anytime.
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