Florida’s Citizens Plans Condo Rate Hike

Florida residents in high-value condominium buildings insured by the state-backed insurer could see their premiums rise 19 percent.

Rates charged by Citizens Property Insurance Corp. for its commercial residential multi-peril risks will go up that much on average. But policies in parts of Broward, Miami-Dade, Palm Beach, Indiana River and Saint Lucie counties that account for $71 million in in-force premium and will actually see an average rate change of 20.6 percent.

Citizens is permitted by law to designate some commercial properties as individually rated risks. The risk needs more than $10 million in coverage and is typically located along the state’s coastline. The risks are divided into two categories: commercial residential multi-peril policies and commercial residential wind-only coverage.

The new rates will take effect in March on new policies and April for renewal policies.

Citizens last raised the rates, by 20 percent, on all individually rated risks in November 2009.

Citizens is not making any rate changes on its individually-rated commercial residential wind-only policies.

As of June 30, 2011, Citizens said it had 925 individually rated risks.

Rates for individually rated risks are exempt from the statewide average 10 percent annual cap on rate increases and do not need state approval.