Citizens Property Insurance Rate Hikes Unresolved
TALLAHASSEE — Proposed rate increases for Florida’s Citizens Property Insurance Corp. customers, which could have taken effect on January 1st, remain unresolved. This means any potential hikes are now unlikely to appear on customer bills for several months.
The Florida Office of Insurance Regulation has yet to rule on the proposal, which was approved by the Citizens Board of Governors in June. The proposal includes provisions for rate increases averaging 13.5 percent for the most common type of Citizens policy, known as homeowners’ multi-peril coverage.
Citizens President and CEO Tim Cerio, when asked about the issue, stated that the insurer is awaiting a decision from regulators. Cerio indicated that if changes were approved now, they likely wouldn’t take effect before May 1st.
“We’ll implement what they decide,” Cerio said after a Senate Banking and Insurance Committee meeting.
Regulators held a hearing on the Citizens proposal in August and have the power to deny or revise any potential increases. Other policy types would also see double-digit increases, with condominium-unit owners facing an average 14.2 percent increase for multi-peril coverage.
State law currently limits annual increases, with a maximum of 14 percent for owner-occupied primary residences in 2025. However, increases for second homes could reach as high as 50 percent.
Citizens officials maintain the need for higher rates, arguing they often charge less than private carriers. The state has focused on moving policies from Citizens to the private market, claiming lower rates dissuade policyholders from switching. However, some homeowners in certain areas claim they have few coverage options.
During testimony before the Senate committee, Insurance Commissioner Michael Yaworsky and Cerio emphasized that the industry, including Citizens, remained financially stable following the 2024 hurricanes Debby, Helene, and Milton.
Yaworsky attributed this strength to comprehensive insurance changes approved by lawmakers in 2022 amid the industry’s financial challenges. He suggested that earlier hurricanes could have triggered carrier insolvencies without these changes.
Cerio noted that as of January 7th, Citizens had paid roughly $823 million in claims from the hurricanes, with over $700 million allocated to claims from Hurricane Milton, which made landfall in Sarasota County last October. Despite the significant payouts, Citizens has not needed to levy extra charges, known as assessments, to cover the hurricane claims, due to its reserves and reinsurance.
