TAMPA, Florida (TodayNews) — The Florida insurance company of last resort expects to add up to 400,000 more policies this year as the state’s property insurance crisis continues to unfold.
While Citizens Property Insurance is awaiting a decision from state regulators on whether to approve the requested double-digit rate increase, the state-backed company is poised for even more gains.
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At a board meeting on Tuesday, the Citizens said they were responsible for more than 1.3 million policies in Florida. CEO Timothy Serio said the company expects the company to cover up to 1.7 million policies by the end of 2023.
Citizens was formed as Florida’s insurance company of last resort, and as insurance companies continue to move out of the state, homeowners are turning to them. The number of policies covered by Citizens has doubled in the last two years.
State regulators have yet to weigh in on the requested 13.3% rate hike, which Citizens says is necessary as they charge significantly less than private insurers.
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“Since 2020, the private market has increased rates by 39% … and that’s a conservative estimate,” Brian Donovan, chief actuary at Citizens, 8 On Your Side, said last month. “During this time, Citizens has increased its rates by 15%, so Citizens rates, which have historically been below private market rates, continue to rise due to the glide path.”
If approved, Citizens plans to implement the proposed rate hike on November 1.