The Real Deal Miami

Legislature allows Citizens rate hike

April 29, 2009 11:12AM

Property premiums at Citizens Insurance, long the insurer of last resort for Florida homeowners, could see rates rise between 5 and 20 percent as the legislature hashes out competing House and Senate bills. The Senate yesterday passed a bill allowing the smaller increase, and a 10 percent compromise is under consideration. If the bills aren’t meshed, a state freeze on rates could disappear later and drive rates up as much as 40 to 55 percent. The insurer needs larger reserves to provide for coverage in case of major hurricane damage.