SOUTHWEST FLORIDA– If you have an insurance policy in Florida you’re being warned that the state-owned insurance company has the power to increase your rates by up to 2%.
This comes as Citizens Insurance said it is nearing 1.3 million customers. The more customers they have the more risky it is to do business and policyholders could be the ones to pay the price.
If you have a home, car, boat or even renters insurance the state insurance company has the power to put a “tax” or a fee which is referred to as an assessment on almost all policies, even if you don’t have Citizens insurance.
“The risk we would have to levy assessments on our policyholders and other Florida customers increases as our policy count increases,” said Michael Peltier, spokesman for Citizens Insurance.
That includes nearly every policy carried in Florida.
Unlike a private insurance company, Citizens is required by law to levy assessments on its customers if funds set aside to pay claims have been exhausted after a major storm or series of less severe storms.
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Terry Tincher is a condo owner in Fort Myers and has seen his rates increase.
“I don’t think we’ve even seen the tip of the iceberg,” Tincher said referring to further rate increases.
The state announced earlier this month an emergency 1% assessment would be added to all Florida policies beginning in October to cover companies that have gone insolvent.
“We’re expecting or our insurance at least double if not triple or quadruple,” Tincher predicted.
News of continued rate hikes like this has more Florida homeowners like Jim Burch going without insurance.
“We don’t have a mortgage on it so we can get away with not having any insurance. So we opted out of it,” Burch revealed.
Reid McDaniel with McDaniel Insurance Solutions said going without insurance can be risky business for homeowners.
“If you’ve been with Citizens for a while and got tired of shopping and find an agent who could do it…it doesn’t mean there isn’t a policy out there for you,” McDaniel said.
Policies continue to increase as hurricane season draws ever closer.
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.