Florida homeowners insurance becoming more expensive due to Citizens Property Insurance
Florida did not experience a calamitous storm throughout 2012. While the state did fall victim to some tropical storms, the damage caused by these events was modest when compared to that of Hurricanes Sandy and Irene, both of which caused serious problems along the East Coast. Despite the fact that the state seems to have skirted any major natural disaster, the cost of property insurance in Florida is on the rise, and Citizens Property Insurance may be the reason.
Depopulation efforts focus on higher rates
Citizens Property Insurance is owned and operated by the state. Because of Florida’s notorious exposure to hurricanes and tropical storms, the state is very unpopular with property insurers because of the financial risks associated with covering properties close to the shore. Citizens Property Insurance is often the only place where homeowners can find the insurance coverage they need. The state-run insurer has been facing several financial problems of its own, however, and the insurer is being pressured by state officials to depopulate itself. Thus, Citizens Property Insurance has been raising rates for its coverage.
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Consumers paying more than double the rates they paid six years ago
According to insurance industry statistics, Florida homeowners are paying twice as much for their insurance coverage than they were just six years ago. In some areas of the state, homeowners are paying well beyond double those rates. Governor Rick Scott has been pushing for higher rates on Citizens Property Insurance policies in order to encourage consumers to move to private insurance companies. Several private insurers have agreed to take on policies from Citizens at the same rates that policyholders are paying now.
Depopulation expected to continue undeterred
The depopulation of Citizens Property Insurance has not been a popular subject with Florida homeowners. While the state-run insurer has been increasing rates on coverage, it is still offering policies that are much more affordable than those that can be found from private insurers. Depopulation has been targeted as the ideal way to solve some of the financial problems the insurance company is experiencing, however, so lawmakers are unlikely to pull back any of the pressure they have put on Citizens Property Insurance.