Just one year after Hurricane Ian, Citizens Insurance announced a significant rate hike for its policyholders.
If you’re one of the 1.4 million people who have a Citizens home insurance policy, you’re about to see a double-digit rate hike on your upcoming bill.
The company also announced it is shedding hundreds of thousands of policies in the coming months.
State-run Citizens Insurance said they just received approval to place an 11.5% increase on their home insurance policies.
CEO Tim Cerio said the company must get rid of policies or the entire state risks paying an insurance tax.
He advises people to check their mail and communicate with their agent if they receive a notice informing them they must go with a private company.
Cerio said the insurer of last resort has become too large. If the company doesn’t shed policies, nearly everyone in the state is at risk of seeing a hurricane tax.
PREVIOUS COVERAGE: Florida homeowners brace for potential hurricane tax
“The smaller we are, the stronger the chance of avoiding an emergency assessment,” Cerio stated.
The company plans to get rid of nearly one million of its 1.4 million policies in the next year or so.
He said the ideal policy count may be closer to 450,000 to 600,000.
CFO Jimmy Patronis promised more insurance companies would return to Florida before the end of the year.
“You will see more carriers that will want to enter the Florida market. They’ll do that after November because we’re out of hurricane season,” Patronis said.
More companies will give policyholders being taken out of Citizens more options to choose from.
Insurance Agent Reid McDaniel explained that if Citizens policyholders receive a depopulation letter, they will likely be able to choose from a list of possible carriers.
He warns those who don’t choose a private carrier or ignore the notice are at risk of the company choosing one for them, potentially at a higher cost.
“I encourage those people now is the time to look and start shopping,” McDaniel said.
Citizens has already started sending out notices and policyholders are urged to keep an eye on their mail.
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.