If Citizens' Rate Is Cheaper, Switch May Be OK
Published: Nov 4, 2006
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TAMPA - State insurance regulators say they will allow certain homeowners with high-premium private coverage to switch to Citizens Property Insurance Corp., the state-supported insurer of last resort.
Homeowners in 25 companies who discover their premiums are higher than those Citizens offers can move to the insurer. The state's order affects companies that have implemented unapproved rates. Florida law allows companies to raise rates without regulatory approval, although regulators later review them to make sure they are reasonable.
Citizens officials say they are unclear how many applicants they will receive because they are not sure how many of the companies are charging higher rates than Citizens. It may take several months before the effect of the order is felt, said Rocky Scott, a Citizens spokesman.
Citizens has grown to be the largest homeowners insurer in Florida. It is supposed to offer coverage to those who can't find policies in the private market.
Under state law, Citizens is supposed to charge among the highest rates in the state, but regulators say at least several of the companies have put into place higher, unapproved rates.
Florida's Office of Insurance Regulation is reviewing the unapproved rates to determine whether higher premiums should be rolled back, spokesman Bob Lotane said.
Last month, regulators said policyholders switched from Citizens to two higher-priced private market insurers with unapproved rates, Home Wise Insurance Co. and Florida Peninsula Insurance Co., could switch back to Citizens.
Florida Peninsula customers, however, can no longer switch to Citizens because the company and the state have reached agreement over new rates.
COMPANIES INVOLVED IN SWITCHES
The following companies charge rates that have not been approved by the state Office of Insurance Regulation. Because their rates are unapproved, insurance regulators are allowing consumers to switch to Citizens Property Insurance Corp. if they find Citizens offers lower rates. Below are the companies and the unapproved rate increases they're implementing.
Company Name
Percent Change Requested
Vanguard Fire and Casualty Co. 92 to 90.9
United Property & Casualty Insurance Co. 88.5
Homewise Insurance Co. 80
First Home Insurance Co. 73.4
Service Insurance Co. 72.5
Sunshine State Insurance Co. 56.2 to 70.7
Federated National Insurance Co. 61.1
Liberty American Select Insurance Co. 22.8 to 44.8
USIC of Florida 40.2
St. Johns Insurance Co. 22.5 to 35.3
Tower Hill Preferred Insurance Co. 27.1
Edison Insurance Co. 25
Owners Insurance Co. 23.3
Southern-Owners Insurance Co. 23.3
Tower Hill Prime Insurance Co. 21.6
First Protective Insurance Co. 20
Hillcrest Insurance Co. 20
Omega Insurance Co. 18.7
Tower Hill Select Insurance Co. 18
First Community Insurance Co 14.4
Church Mutual Insurance Co. 11.49
Metropolitan Casualty Insurance Co. 2.2
Metropolitan Property and Casualty Insurance Co. 2.2
United Services Automobile Association -3.3
USAA Casualty Insurance Co. -3.3
Source: State Office of Insurance Regulation
