The state’s Citizens Property Insurance Corp. has revised proposed rate increases, with many homeowners likely to see double-digit hikes starting late this year.
Citizens last week sent a proposal to the state Office of Insurance Regulation that would lead to an average 11.5 percent increase for homeowners with the most-common type of policies, known as “multi-peril” policies, according to information slated to be presented to the Citizens Board of Governors on Sept. 27.
When other types of personal-lines residential policies are factored in, such as wind-only and mobile-home policies, the average increase would be 12.3 percent. Various types of commercial policies, including condominium association policies, are expected to see an average increase of 10.2 percent.
Citizens made revisions after the Office of Insurance Regulation last month took issue with parts of an earlier rate proposal and ordered some reductions. The revisions were aimed at addressing regulators’ objections, though Citizens had not received a final sign-off as of Friday morning, Citizens spokesman Michael Peltier said.
The order, signed by Insurance Commissioner Michael Yaworsky, cited questions about whether the proposed increases might not be justified in some areas of the state, saying that the Office of Insurance Regulation “finds that due to the inadequate support as it relates to Citizens being non-competitive (with private insurers) … rates should be subject to a modified policyholder capping methodology.”
Under such a methodology, increases could range up to 12 percent for multi-peril policies on primary residences — with some policyholders possibly not seeing increases, according to the order. Under a law that passed last year, rates could increase up to 50 percent for homes that are not primary residences.
