- Three Florida property insurance companies, Citizens Property Insurance Corp., Kin Interinsurance Network, and First Community Insurance Co., have requested rate increases for the upcoming fiscal year from the Office of Insurance Regulation (OIR).
- Citizens proposed a 14.2 percent hike in insurance expenses due to inflation in the construction market, with an average increase of 13.9 percent for homeowner policy rates and 14.6 percent for condo owners.
- Kin and First Community Insurance have requested authorization to increase rates, citing high damage costs following a busy hurricane season.
- First Community Insurance is seeking an average 44.8 percent increase for homeowner multi-peril policies, while Kin has filed for an average 61.5 percent increase on such policies.
This week, three prominent Florida property insurance writers — Citizens Property Insurance Corp., Kin Interinsurance Network, and First Community Insurance Co. — requested the Office of Insurance Regulation (OIR) to approve their proposed rate increases for the upcoming Fiscal Year.
On Wednesday, the Citizens’ Board of Governors internally sanctioned a proposal that grants organizational leaders the opportunity to petition the OIR for authorization to implement a 14.2 percent hike in insurance expenses. According to the group, the recommended rates for 2023 call for a statewide average increase on all personal lines policies including homes, condominium units, dwellings, renters, and mobile homes due to inflation in the construction market.
Specifically, homeowner policy rates would increase by an average of 13.9 percent while condo owners would see an average 14.6 percent increase. If approved by the Office of Insurance Regulation, the 2023 rates would go into effect for new and renewal personal residential policies beginning November 1.
“No one wants their rates to go up. We completely understand that,” said Tim Cerio, Citizens President, CEO and Executive Director. “But the fact is that Citizens rates remain actuarially unsound and artificially low. This inadequacy is unsustainable and heightens the risk of assessments on all Florida insurance consumers.”
An analysis of homeowner multiperil rates conducted in November 2022 found that Citizens’ statewide average premium was 44 percent below premiums charged by nine private companies representing 24% of the market.
On Thursday, both Kin Interinsurance Network and First Community Insurance Co. appeared before the OIR seeking authorization to increase rates. First Community sought an average 44.8 percent increase for homeowner multi-peril policies, while Kin filed for an average 61.5 percent increase on such policies.
Both policy writers claimed a need to raise rates following a busy hurricane season that saw billions of dollars of damage statewide.