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Press Release

Office Statement on Citizens Rate Filing
Thursday, August 04, 2011
Contact Info:

Jack McDermott
(850) 413-2515
Jack.McDermott@floir.com

TALLAHASSEE, Fla. –The Florida Office of Insurance Regulation (Office) has received the first of several annual rate filings from Citizens Property Insurance Corporation (Citizens) – most notably the Homeowners' filings related to the Coastal Account formally known as the  High Risk Account (HRA), and the Personal Lines Account (PLA).
 
Pursuant to Section 627.351(6)(n)6-7, Florida Statutes, Citizens is limited to a 10% annual rate increase excluding the cash build up factor, coverage changes, surcharges and sinkhole coverage which explains why some of these percentages may exceed 10%.
 
The average statewide rate requests for the Coastal Account (HO) are:
 
     Policy Type                        Percent Requested
           HO-3 (Homeowners)                  12.2%
           HO-4 (Tenants)                         10.5%
           HO-6 (Condominium                  11.1%
                       Unit Owners) 
           Total                                       12.1%
 
The Coastal Account provides coverage for the peril of wind.
 
The average statewide rate requests for the Personal Lines Accounts (PLA) are:
 
     Policy Type                 Total Percent               Sinkhole Coverage
      HO-3 (Homeowners)               26.6%                             447%
      HO-4 (Tenants)                      3.6%                               N/A
      HO-6 (Condominium Unit        8.5%
      Owners)
      Total                                   25.4%
 
Note:  The HO-4 and HO-6 charges for sinkhole coverage are not separately identified in the filing.  They are included in the all other perils rates therefore, at this time it is not possible to determine the percent changes in the charges for sinkhole coverage.
 
The Personal Lines Account provides comprehensive, multiperil coverage.
 
The rate filings were received the morning of August 3, 2011, and are available on the Office's
Filing Search page on our website:
 
Note: Once there, the search criteria will be displayed on the left side of the page.  The most commonly used search criteria are the “file log #” and the “company name.”  To view a filing type file log number (example 11-07034) into the file log # field and the filing will be displayed. 
 
The Office will carefully review the filings to ensure they are complete prior to beginning the rate review process. The rate review process will evaluate whether the rates are actuarially justified and that they are consistent with Florida law. Rate filings cannot seek rate increases to recoup past losses, but must reflect actuarially predicated future losses. Due to the potential impact of this filing, the Office will conduct a public hearing and will provide such details when available.
 
The Office has created several tools to enable consumers to send comments to the Office regarding the Citizens’ filing. Consumers may e-mail: RateHearings@floir.com, or visit the Office's website (www.floir.com) and click on the box that reads "Click here to share comments about Citizens Property Insurance Rates." Please be sure to include "Citizens" in the subject line of the email.  
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Contact Info:

Jack McDermott
(850) 413-2515
Jack.McDermott@floir.com

About the Florida Office of Insurance Regulation
The Florida Office of Insurance Regulation (Office) 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 about the Office, please visit www.floir.com or follow us on Twitter @FLOIR_comm.

 

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