Citizens Property Insurance Approved to Have 10% Commercial Property Rate Increases
It is that time of the year again when Commercial Property rates are bound to increase by as much as 10 percent by Citizens Property Insurance. Apparently it has already been approved and will become into effect as from 1st of January 2013 for both new and renewal CR-M, CR-W, CNR-M and CNR-W policies.
It is crazy when you come to realize that the average rate increase is about 10 percent every year. The annual rate changes by territory can be viewed by visiting the Annual Changes: Rates, Rules and Forms section that can be located under the Training and Reference Materials tab found under the Agents section of the Citizens Property Insurance website.
Things like Sinkhole Loss coverage rate changes, coverage changes, surcharges as well as the required cash-buildup provision set aside for Florida Hurricane Catastrophe Fund will be excluded from the annual 10 percent cap.
How Hurricanes Coverage in Florida Are Effected This Coming Year
The unpredictability of hurricanes and other natural disasters lead to significant increases in Occurence Hurricane Deductibles effective this coming year.
This can be seen in that Citizens implemented a mandatory hurrican deductible that increased from $1,000 to as much as $2,500.
One can just imagine the reaction coming from owners of these insurance policies when it is time for renewal and they are presented with figures like these.
Approved Commercial Property Rates Needs Clarification from the State Office
It is interesting to note that a good few people running into the millions have their homeowners insurance provided by the state.
For this reason, the recommended rate increases as well as any adjustments need to go before the State Office of Insurance Regulation. This could be the reason why it is not much different for commercial property owners with regards to their rate increase.
State Law Ensures Cap of Ten Percent Remain in Force
It is thanks to the state law that Citizens Property Insurance are not allowed to exceed the 10 percent cap on both homeowners and commercial property rates.
While it might still be seen to be quite steep, the approved commercial property rate increase are at least helping people cope during these tough economic times we all have to deal with.
It is understandable that companies like Citizens have no choice but to hike their commercial property rates as the possibility of Florida experiencing hurricanes and other storms are quite strong.
Policy Owners Not Left in the Dark
No one is left in the dark with regards to policy changes. The annual renewal offer coming from the Citizens Property Insurance Company will be accompanied by a Notice of Change in Policy Terms.
Thereby full disclosure of any approved commercial property rates will be given to all insurance policy holders. It is only fair that an explanation is given as to why there had to be a rate increase.
Yet, there might still be other cheaper alternatives that commercial property owners can look at to satisfy their insurance needs.