Citizens Property In-surance Corp. plans to seek a rate increase for commercial residential associations, primarily condos, to keep up with increasing premiums in the private market.
Citizens writes wind coverage for customers who otherwise wouldn’t be able to buy it because private insurance companies think they are too big a risk. State law requires Citizens to have higher rates than private companies because it is supposed to be a last resort carrier, not one that customers would choose to buy insurance from.
With rates in private companies increasing, including a 38 percent rate increase approved in February for QBE Insurance Corp., Citizens officials said the company is forced to seek higher premiums for customers of commercial residential association coverage. Large condo complexes are its primary customer.
Citizens officials voted to ask regulators to let it increase those rates up to 20 percent statewide, although the exact amount of the requested increase hasn’t been decided.
Citizens has grown to become Florida’s largest insurer as measured by annual premium volume, $1.3 billion in premiums covering $210 billion in property.
It has already asked insurance regulators for rate increases on homes that would average 80 percent for coastal residents and 50 percent for those inland.
Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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