Blog of Bonnie

TALLAHASSEE, Fla. – Oct. 12, 2010 – Premiums for homeowners insured through Citizens Property Insurance Corp. (Citizens) will rise an average of 10.4 percent starting as early as January. State insurance regulators approved the rate hikes yesterday.

Citing the need to move toward actuarially sound rates, the Office of Insurance Regulation (OIR) raised premiums even higher than the 9.8 percent Citizens requested.

Commercial condominium rates will rise 8.1 percent.

OIR also approved rate hikes of 11 percent for residential wind-only condominium association insurance and 11.3 percent for residential condo association without wind coverage.

Lawmakers have capped rate hikes at 10 percent per year, but Citizens can exceed that cap to help build up the Florida Hurricane Catastrophe Fund. With that in mind, the panel also approved a 3.4 percent CAT fund build-up rate.

Citizens is the state’s largest property insurer with more than 1.2 million policies in place. The Florida Office of Insurance Regulation (OIR) has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets. For more information visit the OIR website at: www.floir.com.