Make us your home page
Instagram

Florida approves 14.6% hike to Universal Property's homeowners insurance rates

Universal Property and Casualty Insurance has received approval from Florida regulators to raise its average homeowners insurance rates about 14.6 percent statewide.

Universal is the second-largest private insurer in Florida behind State Farm, which is in the midst of negotiating a withdrawal from the state's property insurance market. As of the beginning of this year, Universal had 461,000 policies, or about 7.5 percent of the market, according to the Florida Office of Insurance Regulation.

The company is among a flurry of insurers that have sought to raise rates in recent months.

Despite a third straight mild hurricane season, insurers contend their revenue and expenses are taking a hit. In particular, insurers have cited higher reinsurance costs and lowered premiums because of state-mandated discounts for homeowners who have taken steps to shore up their homes against hurricane damage.

Florida Insurance Commissioner Kevin McCarty has said that each request is being considered on its own merits, but in general he sympathized with the rationale for seeking higher rates.

"They're not generating enough revenue. They're not making adequate profits," McCarty told the Times earlier this month.

The upward trending in rates also affects the largest insurer in Florida, state-run Citizens Property Insurance, which has been allowed to end a three-year rate freeze. Effective Jan. 1, Citizens plans to raise rates 10 percent for most of its 1 million policyholders, the first step in what the company sees as a multiyear effort to build reserves through higher rates.

And State Farm recently was allowed to eliminate some long-standing discounts for customers. The lost discounts translated to premium increases for homeowners of as much as 28.4 percent. State Farm said the move, which would bring it an additional $278 million in premiums, was necessary to stay solvent as it slowly pulls out.

Universal's higher rates were effective Thursday for new business and Dec. 11 for renewal business, according to the company's Fort Lauderdale-based parent, Universal Insurance Holdings.

Jeff Harrington can be reached at [email protected] or (727) 893-8242. Follow him on Twitter at twitter.com/jeffmharrington.

Florida approves 14.6% hike to Universal Property's homeowners insurance rates 10/22/09 [Last modified: Thursday, October 22, 2009 10:46pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Datz to open in St. Petersburg, join the James Museum of Western and Wildlife Art

    Food & Dining

    Now Datz news.

    Get it? Tuesday, Datz, the longtime line-out-the-door, oft-Instagrammed and -Yelped Tampa stalwart known for shock-and-awe sandwiches and oh-so-much bacon, announced it is coming to St. Petersburg.

    Lunch guest eat at Datz Deli at 2616 South MacDill Ave. in Tampa. Times files.
  2. Equifax CEO Richard Smith steps down amid hacking scandal

    Personal Finance

    The chief executive of Equifax, the troubled credit reporting agency that suffered a massive data breach that affected as many as 143 million people, will retire, effective Tuesday, according to a statement by the company.

    Richard Smith, chief executive of Equifax, the troubled credit reporting agency that suffered a massive data breach that affected as many as 143 million people, will reportedly retire effective Tuesday.
[File photo: Joey Ivansco/Atlanta Journal-Constitution via AP]
  3. Bass Pro acquires Cabela's for $4 billion

    Retail

    Bass Pro Shops has acquired competitor Cabela's for a reported $4 billion. Bass Pro indicated it is seeking to appeal to all "outdoor enthusiasts" with the move, roping in hunting customers from Cabela's.

    Bass Pro Shops acquired Cabela's for $4 billion, Bass Pro announced Tuesday. | [JAMES BORCHUCK | Times]
  4. Tampa International named among least expensive airports

    News

    TAMPA — Florida airports apparently have a knack for getting it done cheaply.

    According to RewardExpert, Tampa International Airport is the fifth least expensive domestic airport. 
[CHARLIE KAIJO   |   Times
 file photo]

  5. Tampa-based vXchnge secures $200M loan to expand operations

    Corporate

    TAMPA — Tampa-based vXchnge, which operates data centers in 14 metro areas, has secured a loan for roughly $200 million for "major expansions and enhancements."

    Tampa-based vXchnge, a data center provider, secured a $200 million loan. Pictured is CEO Keith Olsen. | [Courtesy of vXchnge]