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Citizens Insurance to propose rate hikes

Proposal could lead to 12% increase for some

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The Citizens Property Insurance Corp. Board of Governors on Wednesday will consider a plan that would lead to double-digit rate increases for homeowners across the state.

The plan would lead to a 12% increase, effective Nov. 1, for people whose homes are their primary residences and who have what are known as “multi-peril” policies — the most common type of coverage.

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The increase would go to 13% for such customers effective Jan. 1. Those increases are the maximum allowed by a state law that caps annual hikes in Citizens’ rates.

During a December special legislative session, however, the Legislature approved allowing the state-backed Citizens to increase rates by as much as 50% for homes that are not primary residences.

The plan would lead to many owners of such homes facing increases higher than 12% or 13%.

If backed Wednesday by the Board of Governors, the plan would need approval from the state Office of Insurance Regulation before it could take effect.

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