Water Damage Crisis Prompts Proposed Citizens Rate Increases
Continuing concerns with water damage claims issues have prompted the Board of Governors of Citizens Property Insurance Corporation to sign off on a proposed 6.8 percent statewide rate increase. This reflects the average rate change, with some territories experiencing greater increases. In addition, the amount that Citizens can increase any policyholder’s rates is capped by law at 10%, so the true impact of the water damage crisis would be greater if not for the cap.
“This is a crisis, and it’s a crisis not only for Citizens,” said Citizens CEO Barry Gilway, “It’s a crisis for the entire industry.”
The upcoming rate filing remains subject to the Office of Insurance Regulation’s authority to review and ultimate set Citizens’ rates. Citizens cited continuing concerns with water damage claims, and the corresponding assignment of benefits issue, as a driving force behind much of the proposed increases.