NOTE: The Citizens Board of Governors Zoom meeting today is open to the public. You can register on their website here. FIRM President Mel Montagne and other local leaders have submitted comments. Legislation is expected to be introduced seeking to eliminate the 10% rate cap on all new Citizens policies. This could have a devastating economic effect in Monroe County with Citizens writing over 70% of the policies in the County.
Citizens Property Insurance Corporation’s Board of Governors on Tuesday
will be asked to approve a 2021 rate package recommendation that reflects input from state insurance regulators to bring Citizens rates more in line with private market insurers.
Board members will consider recommended rates for 2021 that call for a statewide average increase of 7.2 percent for personal lines policyholders – homeowners, condominium unit owners, mobile homeowners, dwelling, and renters. If approved by the Office of Insurance Regulation (OIR), the
2021 rates would go into effect for new and renewal policies after August 1, 2021.
Homeowner policies would increase by an average 6.1 percent. Condo owners would see an average 9.4 percent increase. Renters rates would increase 4 percent on average.
In December, Citizens Board of Governors deferred action on a slate of 2021 rate recommendations that called for an average 3.7 percent increase in personal lines coverage, including a 2.2 percent increase in homeowners coverage. The board directed Citizens actuarial staff to work with OIR to address a growing disparity between Citizens rates and those charged by private insurance companies in many areas of the state.
Citizens is required by law to recommend actuarially sound rates, while complying with a legislative glide path that caps individual rate increases at 10 percent, excluding coverage changes and surcharges. If approved, the recommendations will be submitted to the OIR.
Citizens has prepared a revised 2021 rate kit, which provides members of the media with information about its 2021 rate filing, including county-by-county estimates for specific policy types and frequently asked questions.