Florida Insurance Commissioner Kevin McCarty rejected a request by Citizens Property Insurance Corporation (Citizens) to increase rates in Monroe County and ordered it to reduce homeowners insurance rates for the area.
By law, Citizens rates have to be higher than private insurers’ rates in all areas of the state. However, Monroe County has been found to not have a competitive insurance market, therefore rates are only required to be actuarially sound. Citizens is the state-run insurer for those who cannot access insurance in the private market.
Apparently, Citizens is being ordered to take a -32 instead of getting their request for a +26, based primarily on differences in cat models.
Now, what I’d really love to know is does this create a situation where homeowners insurance is now cheaper in the Keys than in coastal portions of (say) Miami-Dade County.
1 response so far ↓
1 Cindy // 25 Aug 2006 at 4:31 pm
The homes in the Keys should be less than costal Miami Dade. Homes in the keys are built to withstand higher wind speedsnew structures up to 175. For example 85% of roofs are metal. Most private models don’t take that into consideration. Second thought, all homes are within a mile of the coast storm surge and flood is our biggest worry. There arn’t any pool enclosures, or high rises.