It’s been known as the last resort property insurer for Floridians.
But lately, Citizens Property Insurance Corporation may be the only option for insurance in some zip codes, and their rate increases started Thursday.
Florida homeowners insured by Citizens Property Insurance are facing an average rate hike of 6.4%, which is now in effect for thousands of homeowners.
The increase comes as the state-run insurer proposed rate hikes over the next several years.
Citizens Property Insurance Corporation has now topped 1 million policies in Florida. In the last year, it’s been writing an average of 32,000 new policies a month.
The company urged the Office of Insurance Regulation to approve rate hikes in order to strengthen its financial position.
When it’s time to renew, policyholders will see an increase and new policyholders will face higher rates. The rates increased from 6.4% to 10.7%, depending on the time of coverage.
Citizens Insurance was also approved to continue increasing rates by 1% annually until it reaches the cap at 15% in 2026.