Florida's 14% Insurance Rate Hike Proposal

Florida's Citizens Insurance has proposed a significant rate hike of over 14% for its policyholders. This move comes as the insurer aims to redirect policyholders to the private market, asserting that current rates are artificially low. The proposed increase, affecting over a million policyholders, is set to be effective from November 1, pending approval. Meanwhile, other local insurers are also on the path of revising their rates upward, a trend that spells a financial storm for homeowners in the Sunshine State​. The proposal for the rate hike was made to address the doubling of policy count over the last two years, as private insurers exited the market or dropped customers. Citizens Insurance, initially a last-resort insurer, now has over 1.2 million policies. The rate increase also aligns with Citizens Insurance's intent to return to its smaller market role. Moreover, while Citizens proposes a 14% increase, other insurers like First Community Insurance and Kin Insurance Network are seeking rate hikes of nearly 50% and 61.5% respectively