In looking to decrease its exposure, the Florida legislature has moved forward on legislation that will raise premiums on owners of state-backed Citizens Property Insurance policies. The Miami Herald reports:
Lawmakers approved the proposal (HB 1495) Thursday that would increase rates on a gradual basis for customers of the state-backed Citizens Property Insurance Corp. The policyholders would see premiums increased an average of 10 percent in the next several years to avoid a potential one-time increase of between 40 and 55 percent on Jan. 1.
The House vote could come Friday.
Lawmakers are trying to decrease the state’s $20 billion exposure on the Florida Hurricane Catastrophe Fund by shoring up Citizens by getting all of its policies actuarially sound.
This is what happens when insurance companies like State Farm abandon markets when they’re not allowed to charge however much they would like. This is a dangerous territory Florida will be finding itself in and something residents of the Gulf Coast need to keep an eye on should this occur in their state.