The Florida Office of Insurance Regulation (OIR) has issued an order establishing the 2017 commercial property rates for Citizens Property Insurance Corporation.
Rates are going up for all accounts except the Commercial Property Non-Residential Multi-Peril. Some lines will see rate increases by as much as 12 percent.
The overall estimated statewide average rate changes are shown in the chart below. The effective date for both new and renewal rates within the Commercial Lines and Coastal Accounts is February 1, 2017.
|Account||Original Rate Requested||Estimated Rate Established|
|Commercial Property Residential Multi-Peril (Condo Assn.) Commercial Lines Account #16-18917||4.5% increase||4.5% increase|
|Commercial Property Residential Multi-Peril (Ex. Condo Assn.) Commercial Lines Account #16-18920||5.4% increase||5.4% increase|
|Commercial Property Non-Residential Multi-Peril Commercial Lines Account #16-19213||0.0%||0.0%|
|Commercial Property Residential Wind Only (Ex. Condo Assn.) Coastal Account #16-19498||11.2% increase||11.2% increase|
|Commercial Property Residential Wind Only (Condo Assn.) Coastal Account #16-19500||12.0% increase||11.9% increase|
|Commercial Property Non-Residential Wind Only Coastal Account #16-19522||9.8% increase||9.8% increase|
The Florida Hurricane Catastrophe Fund cash buildup factor changes are included in the rates.
OIR also requested a review by the Florida Commission on Hurricane Loss Projection Methodology on how wind rating models and stricter building standards impact rates in Monroe County. The move was made in response to testimony from multiple Monroe stakeholders at the Citizens’ rate hearing that expressed concern over the rate increases.
OIR said the review is in addition to a separate initiative underway to evaluate building code standards in Monroe County and their effect on rates. OIR said it will require an additional rate filing by Citizens for its policyholders in Monroe County if the results of either or both of these efforts support such a filing.
Last month, OIR approved a 6.4 percent overall rate increase for 2017 for Citizens Property Insurance Corp. homeowners’ multiperil policyholders across the state. According to Citizens, the increase is necessary to address what it calls a disturbing increase in non-weather water loss claims and litigation for homeowners.
OIR has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets.
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