Florida's Citizens Property Insurance to raise rates
Updated On: Jul 27 2012 06:01:46 PM EDT
The governing board of Florida's insurer of last resort voted on a proposed increase of almost 9 percent on average statewide, and more likely 11 percent for South Florida's half-million customers.
The Citizens Property Insurance Corp. board was set to vote on the rate hike request Friday in Miami. The state-backed Citizens is Florida's largest property insurer with 1.4 million customers. Citizens by law cannot raise rates more than 10 percent per year.
Many private home insurers abandoned Florida because of the threat of catastrophic hurricane damage. Others have sharply raised rates because of the risk.
The Citizens rate increase would be higher for homeowners in areas at most risk for sinkholes.
The proposed increase must also be approved by state regulators.
Citizens is cutting policies to reduce its potential exposure to major hurricane damage.
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