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Insurance rate hikes on agenda

Public hearings in Clearwater next week will look at Citizens' proposed increases of more than 20 percent for homeowners.

By TOM ZUCCO
Published January 24, 2006

For beleaguered homeowners, it will be a chance to ask questions, and hopefully, get some answers.

The Florida Office of Insurance Regulation will hold public hearings in Clearwater next week concerning proposed rate increases by the state-backed Citizens Property Insurance Corp.

Citizens is seeking to raise homeowners' rates 22.6 percent to 68.2 percent statewide. The requested rates are not uniform and some areas are subject to a higher rate increase. The average increase is about 45 percent.

Citizens was created by the Florida Legislature in 2002 to serve as the state's insurer of last resort for homeowners who cannot find coverage in the private market.

One out of five homeowners in Florida have their policies with Citizens, making it second in size only to State Farm.

If approved by state regulators, the new rates would assure that most Citizens policyholders will see double-digit increases in their premiums by the middle of this year. The increases would go into effect in two steps, beginning with renewals and new policies.

Property owners who rely on Citizens only for their windstorm coverage face even higher increases, an average of about 80 percent statewide.

The hearings will be at 6 p.m. on Feb. 2 and 10 a.m. on Feb. 3 at the Harborview Center, 300 Cleveland St., Clearwater.

[Last modified January 24, 2006, 00:55:20]