Citizen's Surprise: 3rd Rate Hike Planned
Just as Citizens is starting to collect an average 16.9 percent rate increase, the state-run insurer of last resort revealed plans to ask for a third rate hike this year for its homeowner policies.
"The latest hike - the amount is not yet determined - would be in addition to not only the 16.9 percent increase but also a separate 45 percent increase Citizens requested that has been delayed.
The plan for the triple whammy came to light Thursday at a meeting in Tallahassee of Citizen's actuarial and underwriting committee.
Citizens officials said they did not know how much the latest rate increase would be, or when it would be formally requested.
Even before that third increase, a Citizens policyholder paying $1,000 in premiums now could be paying as much as $1,700 if the first two hikes are approved.
Also at Thursday's meeting, an actuary for Citizens said that the 45 percent rate increase Citizens requested has been delayed by the Florida Office of Insurance Regulation. It was expected to take effect March 1, but has been postponed until Sept. 1."
People like Judy Catalano, who was one of the first Citizens policyholders to find out about plans for a third hike within a year.
When Catalano, who lives on a fixed income, moved to her 34-year-old home in Dunedin in 1999, her homeowner's insurance with a private carrier was $998.
But that carrier dropped her, leaving Citizens as her only alternative. "The insurance check I wrote to Citizens yesterday was for $2,959," Catalano said Friday.
When she called Citizens Thursday to ask why rates were so high, she was told yet another increase was on its way. "I just said, "Really? Think about what's going on with property taxes and utility bills and gas prices.' "
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Boomers packing to move to Florida......don't forget to bring your checkbooks---and a can of Crisco!
Just as Citizens is starting to collect an average 16.9 percent rate increase, the state-run insurer of last resort revealed plans to ask for a third rate hike this year for its homeowner policies.
"The latest hike - the amount is not yet determined - would be in addition to not only the 16.9 percent increase but also a separate 45 percent increase Citizens requested that has been delayed.
The plan for the triple whammy came to light Thursday at a meeting in Tallahassee of Citizen's actuarial and underwriting committee.
Citizens officials said they did not know how much the latest rate increase would be, or when it would be formally requested.
Even before that third increase, a Citizens policyholder paying $1,000 in premiums now could be paying as much as $1,700 if the first two hikes are approved.
Also at Thursday's meeting, an actuary for Citizens said that the 45 percent rate increase Citizens requested has been delayed by the Florida Office of Insurance Regulation. It was expected to take effect March 1, but has been postponed until Sept. 1."
People like Judy Catalano, who was one of the first Citizens policyholders to find out about plans for a third hike within a year.
When Catalano, who lives on a fixed income, moved to her 34-year-old home in Dunedin in 1999, her homeowner's insurance with a private carrier was $998.
But that carrier dropped her, leaving Citizens as her only alternative. "The insurance check I wrote to Citizens yesterday was for $2,959," Catalano said Friday.
When she called Citizens Thursday to ask why rates were so high, she was told yet another increase was on its way. "I just said, "Really? Think about what's going on with property taxes and utility bills and gas prices.' "
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Boomers packing to move to Florida......don't forget to bring your checkbooks---and a can of Crisco!
