Due to the costly water damage claims, the Citizens Property Insurance Board of Governors have approved a proposed 6.8% statewide rate increase.
The new approved rates will have numerous effects on customers who have Citizens Property Insurance as their carrier and will likely see premiums to go up by 6.8% while others might see smaller increases. However, state regulators will have the final verdict of whether to approve the proposed rate increase or not and could take as early as 2017.
Officials at Citizens blame water damage claims as the main reason for rate hikes. Contractors pursue payments from insurance companies and will be the first ones to adapt to the rate hikes due to legalities.
On the other hand, the insurance industry argues that water damage claims have been abused related to issues such as broken pipes. The industry maintains their claim that the process of revamping has driven up the costs of claims and has prompted a lot of expensive lawsuits.
It is indeed a crisis for the entire insurance community and the citizens. The proposed 6.8% hike across the state would have varying effects on homeowners based on various factors such as their location and the type of policy they have.
Moreover, Florida has not been hit by a hurricane for over a decade which begs the question, is the proposed rate hike a precautionary measure to cater the claims if a hurricane does arise? Properties near the coast will see increase in their premiums while those who are far from hurricane region and the coast might relatively see a small increase in premiums.
Where do you get the most competitive rates?
Diverse Insurance Group specializes in providing the most competitive rates out there. This is due to professional ex-Citizens underwriters who have years of experience and are at a better stance to negotiate a better rate for you.
If you have any queries regarding your home insurance, feel free to contact us at (754) 300 7352. Also, fill out the free quote form to get the most competitive insurance rates out there!