Property Insurance Rate Changes in Florida Law

Florida Senate President Don Gaetz released the following about rate reductions Citizens Property Insurance Corporation personal home insurance policyholders will see in 2015:
“The announcement today from Citizens Property Insurance Corporation that nearly 70 percent of personal-lines policyholders could see a rate reduction next year under the proposed rates is good news,” said President Gaetz. “Coupled with last week’s vote by the Governor and Cabinet ending the 1.3 percent emergency Cat Fund assessments on property and casualty policies to pay for past hurricane losses, these reductions make it clear that Florida is moving in the right direction in addressing Florida property insurance issues integral to our real estate market. Citizens’ rate reductions for 2015 are the result of stronger reinsurance markets, 2011 legislation addressing sinkhole claims, the buildup of a significant surplus due to the recent lack of hurricane activity, and the Legislature’s continued efforts to reduce Citizens’ exposure. Additionally, in 2013 the Legislature took steps to reduce the size of Citizens by moving policyholders back into the private market through an insurance clearinghouse. Citizens announced earlier this year that it reduced to under one million the number of policies it insures and expects further reductions by the end of the year.

“While not all Citizens’ policyholders would see rate reductions, all Floridians will see a reduction due to the elimination of the emergency assessment. There is still much to be done in this area, but these positive indications are evidence that we are taking the right steps toward improving Florida’s insurance market.”

Citizens Property Insurance Corporation is a not-for-profit, tax-exempt government corporation whose public purpose is to provide insurance protection to Florida property owners throughout the state. The corporation insures hundreds of thousands of homes, businesses and condominiums whose owners otherwise might not be able to find coverage.

Citizens operates according to statutory requirements created by the Florida Legislature and a Plan of Operation approved by the Florida Financial Services Commission. The corporation is governed by a Board of Governors that administers its Plan of Operation. Florida’s Governor, President of the Florida Senate, Speaker of the Florida House and the state’s Chief Financial Officer each appoint two members to the Board.

Citizens has offices in Tallahassee, Jacksonville and Tampa. Tallahassee is the corporate headquarters for the organization. The Jacksonville and Tampa offices provide policy services and underwriting, claims, and customer support.

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