Hurricane Irma could further inflate Citizens’ premiums in South Florida

The big state-run insurer's premiums already were headed higher before Irma tore through the Caribbean

TRD MIAMI /
Sep.September 09, 2017 10:00 AM

Barry Gilway, Citizens’ president and CEO

Before Hurricane Irma began approaching the state, South Florida policyholders of Citizens Property Insurance Corp. already were likely to pay higher premiums, and the big state-run insurer may charge even more in Irma’s destructive wake.

In August, Citizens CEO Barry Gilway said policyholders with homes in Miami-Dade and Broward counties probably would see a 10 percent increase in their premiums this year, due in part to water-damage claims. Gilway estimated that average premiums would rise in Miami-Dade to $3,219 from $2,926 and in Broward to $2,926 from $2,390.

That was before Hurricane Irma ripped through the Caribbean region as a Category 5 storm. Gilway expects as many as 100,000 claims due to Irma.

Robert Hartwig, an economist and insurance expert at the University of South Carolina predicted that Citizens will charge higher premiums due to Irma because the powerful Atlantic hurricane on record poses a severe threat to coastal areas, “where Citizens’ market share is greatest.”

Citizens has 218,000 policies covering property in Miami-Dade, Broward and Palm Beach County, accounting for 15 percent of all policies in the three counties, compared to 41 percent in 2011.

The insurer has a $7.5 billion surplus, enough cover a surge in claims for damage inflicted by Hurricane Irma, experts told Associated Press, but Irma-related claims also could herald higher premiums in future years. [Associated Press] Mike Seemuth


Related Articles

arrow_forward_ios
Gables Town Colony apartment complex, Sue Ansel of Gables Residential

Gables Residential scores $85M loan for Boca Raton apartment complex

Gables Residential scores $85M loan for Boca Raton apartment complex
Broadstone City Center with Alliance Residential’s Bruce Ward and Nuveen CEO Jose Minaya

Nuveen pays $103M for West Palm luxury apartments

Nuveen pays $103M for West Palm luxury apartments
Edmund Ansin and the property (Credit: Google Maps)

Billionaire TV family sells Miramar property to Florida Crystals

Billionaire TV family sells Miramar property to Florida Crystals
Toscana apartments and Juan Porro of FCI Residential

Florida Crystals sells Margate rentals for $60M

Florida Crystals sells Margate rentals for $60M
From left: Andrea and Renzo Rosso

Diesel family dishes on Wynwood condo project

Diesel family dishes on Wynwood condo project
 4601 Le Jeune Road, Jose Boschetti and Maurice Boschetti

Gables Residential sells dev site near Shops at Merrick Park

Gables Residential sells dev site near Shops at Merrick Park
Florida Keys hotels (Credit: iStock)

Hurricane Dorian delivers blow to Florida hotel occupancy, revenue: report

Hurricane Dorian delivers blow to Florida hotel occupancy, revenue: report
Greg Pinkalla and ORA Flagler Village Apartments (Credit: Google Maps)

Fairfield Residential sells new Flagler Village apartments for $92M

Fairfield Residential sells new Flagler Village apartments for $92M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...