Florida Regulator to Hold Hearing for Proposed Citizens’ Rate Increases March 12, 2021
The Florida Office of Insurance Regulation will conduct a rate hearing on Monday, March 15 on proposed rate increases from Citizens Property Insurance Corp.
The hearing will be held virtually at 9 am EST and will include testimony and public comment on the insurer’s proposed rate filings.
The Citizens Board of Governors approved 2021 rate recommendations in January that call for a statewide average increase of 7.2% for personal lines policyholders – homeowners, condominium unit owners, mobile homeowners, dwelling, and renters. Homeowner policies would increase by an average 6.1%. Condo owners would see an average 9.4% increase. Renters rates would increase 4% on average.
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Demotech Withdraws Rating of American Capital, AM Best Issues Downgrade
American Capital Assurance Corp., a Florida-based insurer focused on commercial residential and non-residential property risks, as well as flood coverage, had its Demotech rating withdrawn and was downgraded by AM Best.
Demotech announced March 5 that it had withdrawn American Capital’s financial stability rating (FSR) of “A” after review and analysis of 2020 statutory financial information filed by the insurer and the company’s decision to no longer participate in Demotech’s rating process. As of March 4, 2021, American Capital Assurance Corp. is no longer followed or rated by Demotech.
“We advised AmCap we would no longer support an FSR at the A level and offered them an FSR of M or withdrawal,” Demotech Founder and President Joseph Petrelli said in an e-mail to Insurance Journal. “AmCap then opted to be not rated rather than rated M [moderate].”
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Editorial: Lawmakers take aim at Floridians roofs
Our view
Two bills under consideration by the Florida Legislature could create more problems than they’re trying to solve. Senate Bill 76 and House Bill 305 would reduce the amount insurance companies would pay to replace damaged roofs.
Under Florida’s Building Code, if 25 percent of a roof is damaged by a storm, the entire roof must be replaced. Insurers pay for the replacement minus the homeowner’s deductible.
Under the proposed legislation, insurers would only pay the full replacement cost of roofs less than 10 years old. The replacement costs of older roofs would be depreciated, with homeowners receiving between 25 and 70 percent of the replacement cost. It is estimated a shingle roof would be replaced at 40 percent.