Thursday, Oct 04,2012
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Citizens Property Insurance Corp., Florida's homeowners insurance goliath, recently received approval from state insurance regulators to raise rates across the region.
According to the Tampa Bay Times, the public provider of roughly 1.4 million policies recently obtained approval to raise homeowners rates in the state by approximately 11 percent, depending on coverage.
According to the Times, the soaring hikes are occurring as part of a government-planned initiative to force policyholders out of the large insurer's hands and move them to private insurance firms. Because the large, publicly-funded provider insures so many homes in the state, the governmental risk of supporting so many policies is not ideal.
Citizens is intending, specifically, to rid itself of high-risk homes. For example, homes with sinkhole insurance will face rate hikes of 21.4 percent, while those with dwelling fire coverage who also want sinkhole protection will see fee raises of 44.8 percent, according to the St. Augustine Record.
The rate hikes follow the decision made earlier this year to split up approximately 221,000 of Citizens' policies among five private insurance firms, notes the Times.
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