Citizens Property Insurance to raise rates in South Florida and elsewhere
Water damage claims are becoming more common in South Florida, which is leading to an increase in homeowners insurance rates in the region. Florida’s Citizens Property Insurance had intended to reduce rates for homeowners in South Florida, but water damage claims have become more plentiful and more costly. Most of the state’s water damage claims originate from South Florida, which is no surprise considering the region’s proximity to the ocean and the storms it is exposed to.
Rates had been on the decline in many parts of he state
Though rates are going up in South Florida, they had been falling in other parts of the state. Most of Florida has avoided a significant natural disaster for several years. As such, damage claims has fallen in many parts of the state, but not in South Florida. In this region, which is comprised of Broward, Palm Beach, Miami-Dade, and Monroe counties, claims have not abated, and this has pressured Citizens Property Insurance to raise rates on coverage in order to mitigate losses and accommodate increased risks.
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Homeowners insurance rates expected to increase by an average of 3.2% statewide
South Florida is generating more claims, but insurance premiums will be rising throughout the state. This week, Citizens’ Board of Governors approved a rate increase of 3.2% on all personal property insurance lines in the state. Those is South Florida are expected to see the highest average increase in homeowners insurance premiums, with some 85,160 personal lines in Broward County alone seeing an average increase of 4.8%. In Monroe County, homeowners insurance rates are expected to raise by 10.3%.
Citizens continues to mitigate financial losses
Citizens Property Insurance has been working to overcome financial problems for some time, and has managed to make significant progress toward this goal over the past two years. A higher number of claims have slowed this progress, however, and placed the insurer under heavier financial strain. Raising rates on coverage will help alleviate this stress and provide the organization with a way to recover from losses it is seeing from water damage claims.