Make us your home page
Instagram

Regulators approve Citizens Property Insurance rate hikes

Barry Gilway, president of Citizens Property Insurance, shown during a 2012 meeting in Miami, had requested an average 6.8 percent increase in rates. State regulators approved a 6.4 percent hike.
[Associated Press file photo]


Barry Gilway, president of Citizens Property Insurance, shown during a 2012 meeting in Miami, had requested an average 6.8 percent increase in rates. State regulators approved a 6.4 percent hike. [Associated Press file photo]

Florida insurance regulators late Friday afternoon disclosed that Insurance Commissioner David Altmaier has approved a range of rate increases for policyholders of state-run Citizens Property Insurance.

Rates for multiperil homeowners policies, the most common line, will rise 6.4 percent on average, just shy of the 6.8 percent rate hike sought by Citizens Property Insurance.

Citizens' coffers have benefited from an era of cheap reinsurance and 11 hurricane-free years until the recent Hurricane Hermine, which happened after the rate request was filed and is not expected to have a major impact on insurers.

The impetus for the latest rate increase, property insurers say, are rising non-weather-related water-loss claims tied to what's known as "assignment of benefits."

That's when homeowners in need of repairs, often for water damage, assign responsibility for the repair over to contractors to pursue payments from insurance companies.

Property insurers statewide, including Citizens, have unsuccessfully lobbied the state Legislature to restrict the practice, which they say has been ripe for abuse and leads to litigation. Often, the damage has been repaired before insurance companies are contacted, making it hard to determine whether claims are valid.

Contractors and attorneys representing homeowners, however, have said that the assignment of benefits lets them quickly make repairs to help homeowners without waiting for insurance company approval.

A year ago, Citizens said, the spike in water-related claims was centered on South Florida, which is why rates rose sharply in that part of the state, but stayed flat or fell elsewhere.

This year, Citizens says the practice has spread to Tampa Bay and other parts of the state, driving up rates for many of its customers.

"The 2017 rates reflect the growing challenge of rising water loss claims and the disturbing increased costs associated with assignment of benefits," Barry Gilway, president, CEO and executive director of Citizens Property Insurance Corp., said in a statement. "Unless the Legislature takes action, our policyholders can expect these increases for years to come."

Citizens acts as an insurer of last resort for the state, offering policies to those who can't find coverage in the open market. The company has taken dramatic steps to cut its policy count and improve its finances, cognizant that all Floridians with insurance can be assessed if Citizens is unable to cover claim losses after a major hurricane.

Among area counties, Citizens had sought multiperil rate hikes of 7.1 percent in Pasco, 4.3 percent in Hernando and 3.1 percent in Hillsborough. It filed a request to cut rates by 7 percent in Citrus and keep them virtually flat in Pinellas, falling just 0.3 percent. Michael Peltier, a spokesman for the insurer, said he would not have a county-by-county breakdown of approved rates until Monday.

The effective date for both new and renewal rates is Feb. 1.

Contact Jeff Harrington at [email protected] Follow @JeffMHarrington.

Regulators approve Citizens Property Insurance rate hikes 09/16/16 [Last modified: Friday, September 16, 2016 7:58pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Gourmet food fight between top chefs raises $200,000

    News

    ST. PETERSBURG — The chefs came armed with their secret ingredients — pork rinds, truffle butter, pork bellies.

    (From left to right) Chefs Ryan Mitchell, Michael Buttacavoli, Ted Dorsey and Matthew Brennan compete during Tampa Bay Food Fight at The Coliseum in St. Petersburg on Tuesday. The event features chefs from the Tampa Bay area and benefitted Metropolitan Ministries. EVE EDELHEIT   |   Times
  2. HSN star Joy Mangano promotes new book: Inventing Joy

    Retail

    ST. PETERSBURG — After more than 30 years, Joy Mangano knows a thing or two about promoting products. Now she's promoting herself.

    Inventor and entrepreneur Joy Mangano is releasing her first new book, Inventing Joy on Nov. 7. [TIERRA SMITH | Times]
  3. Moffitt CEO Alan List, new chair of Tampa Hillsborough EDC, outlines goals for 2018

    Economic Development

    Moffitt Cancer Center CEO Alan List was officially elected the 2018 chairman of the Tampa Hillsborough Economic Development Corp. at the EDC's annual meeting held Tuesday night at the Amalie Arena. He endorsed a stronger pursuit of life science business for the region and praised ongoing efforts to raise the national …

    Dr. Alan F. List, CEO of Tampa's Moffitt Cancer Center, now wears an economic development hat as the 2018 chairman of the Tampa Hillsborough Economic Development Corp. [Special to the Times]
  4. Demolition begins on wing of Channelside Bay Plaza, making way for Water Street Tampa (w/video)

    Business

    TAMPA — The original developers of Channelside Bay Plaza at first wanted the name of the complex to include the word "Garrison." That would have fit, because the center turned out to be fort-like, inwardly focused and unwelcoming.

    A pedestrian bridge in the southwest wing of Channelside Bay Plaza was demolished in Tampa on Wednesday, Oct. 18, 2017. [Gabriella Angotti-Jones  | Times]
  5. Sunday Supper returns with 25 chefs, food fests galore

    Food & Dining

    Save the date: SUNDAY SUPPER

    This just might be the dinner of the year. The Bern's family of restaurants has organized a James Beard Foundation fundraiser to fund the Bern Laxer Memorial Scholarship for culinary students in the state of Florida for a number of years. But this week they announced the …

    Bern’s Steak House located at 1208 S Howard Ave, Tampa on Wednesday 2/19014