TALLAHASSEE, Fla. — Florida is now one step away from a double-digit premium hike for Citizen’s Property Insurance customers. The state-backed insurer tried to make its case for a price bump to state regulators Thursday afternoon, saying it’s needed to keep the recovery of Florida’s insurance market on track.
With Florida is already seeing some of the highest home insurance premiums in the country. The plan to raise them higher was met with frustration by Citizens customer James Tynan, who drove over from Ponte Vedra Beach.
“Now they want to raise them 14% and that’s going to hit us very hard for all the homeowners,” he said.
Tynan was among a handful of consumers who told state insurance regulators the hike was a bad idea. He said his condo housing costs would go from around 30% to 40% of his budget— and private insurers were uninterested in taking him on.
“I’m hoping that they put themselves in the shoes of the associations and the homeowners,” said Tynan. “Walk in those shoes for a while and then think about if 14% is the right amount.”
Citizens, which is backed by the state, is pushing for that averaged near-14% increase in 2025 for many of its 1.2 million policyholders. According to the company’s own projections, personal line policies would see average premiums jump hundreds of dollars:
- Miami-Dade, $699.
- Palm Beach, $670.
- Places like Hillsborough and Pinellas— $360.
“It is a very difficult request,” said CEO of Citizens Tim Cerio.
Cerio said the company's current rates were too competitive with the private market. That could hamstring recovery in Florida— which has started to see signs of relief after years of reform. That glut of litigation driving up costs is down, plus some private providers are asking for flat rates in the next year — and a few seeking a rate decrease.
“The market’s rates are up here,” said Cerio, raising one hand about a foot above his other. “We’re down here. It’s basically a form of subsidized insurance. We have to get our rates up. We’re the state-sponsored insurer of last resort — and the insurer of last resort in any state should never be competing with the private market.”
State insurance regulators still need to give final approval to the proposal for it to take effect. That’s not a guarantee after the panel in Tallahassee grilled Citizens for hours about the idea and its need.
Officials with the Office of Insurance Regulation told us they expect to have a decision by August 26. In the meantime — the public comment window is open until August 15th.
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