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Citizens ordered to change plans to raise home insurance rates

Florida insurance costs rank No. 1 in US for cars, home


The state-backed property insurance company initially proposed a 12 percent rate hike for most people with ‘multi-peril’ policies on their main residences.

TALLAHASSEE, Fla. — Florida regulators are now ordering the state-backed property insurance company Citizens to reduce the rate hikes they proposed. 

Citizens asked Florida’s Office of Insurance Regulation to approve an overall rate hike of 13.3 percent, with 12 percent hikes to homeowners with “multi-peril” policies on their main homes. Citizens officials told regulators these price increases are necessary to bring their rates closer to those charged by insurance companies on the private market.

They also say the rate hike is necessary to help state leaders shift policies out of Citizens into the private market. This is something state leaders have long sought to do, at least partly because of financial risks to state backing if Florida gets hit by a major hurricane or multiple climate disasters. 

According to Citizens officials, the company’s lower insurance rates are undercutting the state’s efforts to bring its policies into the private market.

Florida Insurance Commissioner Michael Yaworsky, however, officially contended that 12 percent is too high of a rate hike. He signed an order asking Citizens to “calculate new, reduced, overall average statewide rate increases for the rate filings.” 

The methods suggested by regulators would make 12 percent the maximum price increase possible for some “multi-peril” policyholders, with certain policyholders seeing no rate hikes at all. Under laws passed in 2022, policies for homes that aren’t the holder’s primary residence could see rate hikes of up to 50 percent.

Citizens has until Sep. 17 to submit a new proposal. Under their agreement with the Office of Insurance Regulation, their rate increases, once approved, would take effect on Dec. 9.



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