Florida's Citizens plans to raise premiums
A panel of board members for Florida's state-run homeowners insurance provider, Citizens Property Insurance, signed off on a number of recommendations that will be discussed at a meeting of the state Cabinet next week.
In addition to a premium hike, the panel proposed capping the maximum value of homes it covers at $1 million instead of the current $2 million. In addition, it would reduce the maximum liability coverage homeowners could carry. Other potential changes include alterations to policies for condominiums and some coastal businesses.
"Some of these proposed changes are salt in the wounds of struggling homeowners," insurance advocate Sean Shaw told The Associated Press. "Raising rates while offering less coverage is callous bullying of consumers who have no other options."
State officials have said they hope to reduce risk for Citizens, since any funding shortfall would force the state to make it up through a surcharge on most insurance policies statewide.
Citizens previously announced that it was planning to drop coverage for structures separate from the main home on a property, such as gazebos and pool enclosures, to reduce its policy count.
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