Monroe County Exempt from new wind Insurance rates

MONROE EXEMPT FROM APPROVED WIND RATES

Florida Insurance Commissioner Kevin McCarty on Friday did what he said he was going to do: Exclude Monroe County in approving Citizens Property Insurance Corp.'s rate filing.

The rate includes two filings: actuarial and top-of-market, the latter being higher than the average of the top 20 companies. The state's insurer of last resort must charge higher rates so it doesn't compete against private insurers.

Monroe County is in a pilot project that limits rates to an actuarial filing, since the state found it has no competition.

After experiencing eight major hurricanes during the last two years, Citizens accumulated a $1.7 billion deficit. The Legislature appropriated $715 million to cover the deficit, which Citizens usually covers with an assessment it charges private insurers, as required by state law. Private insurers pass that cost on to customers through a surcharge on premiums, which are expected to decrease 20 percent, to a 3.5 percent levy, thanks to the legislative bailout.

"I am very pleased that the Legislature allocated a portion of the sales tax revenue surplus to provide rate relief to all Florida policyholders," McCarty said. "However, we still need to take strong measures to ensure that Citizens' rates are actuarially sound to minimize future assessments."

Citizens made its top 20 filing in December and actuarial filing in January.

"Our actuarial staff has rigorously examined these rates, and I am confident the approved adjustments achieve adequate rates given the risks involved," McCarty said.

McCarty's order approved combined average rate increases for homeowner's policies of 16.1 percent on a statewide basis; 6.7 percent for mobile home policies; no increase for condominium unit policies; and 21.5 percent for dwelling fire policies.