The majority of homeowners with Citizens Property Insurance should expect to see a rate increase next year, after the Office of Insurance Regulation on Friday approved most of the changes requested by the state-backed insurer.
The new rates will go into effect on Feb. 1, 2017.
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Citizens requested the increase primarily to cover a surge in water-damage claims.
“The 2017 rates reflect the growing challenge of rising water loss claims and the disturbing increased costs associated with assignment of benefits,” Citizens President & CEO Barry Gilway said in a press release. “Unless the legislature takes action, our policyholders can expect these increases for years to come."
Insurance Commissioner David Altmaier adjusted down the request on homeowners' multi-peril accounts from 6.8 percent to 6.4 percent, but regulators approved the rest of Citizens' requests without change.
Under the rates approved Friday, homeowners' wind-only insurance in coastal areas will increase an average 8.2 percent and mobile homeowners' multi-peril accounts will go up by 5.7 percent.
The actual premium change for individual policyholders depends on a number of factors, including the amount of coverage and the location of the property.
A homeowner with multi-peril coverage in Miami faces an average hike of 9.9 percent while the same coverage in Orlando on average will decrease by 3.6 percent.
Citizens projects that, of its 492,775 personal and commercial policies in place as of Sept. 9, about 100,000 will see rate reductions next year. Regulators also ordered further review of the rates of Monroe County, which includes the Florida Keys.
"This review is in addition to a separate initiative underway to evaluate building code standards in Monroe County and their effect on rates," the release from the Office of Insurance Regulation stated. "The office 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."
The review comes after officials and residents in Monroe County sought a delay on wind-storm policies.
Republican Sen. Anitere Flores, who has pushed legislation that would scale back the size of Citizens, called the rate hike a "slap in the face" of consumers.
"Not only are law abiding policyholders being punished for those abusing the system, they are being forced to comply with an increase that is not even across the board throughout the state," Flores, R-Miami, said in a press release.