Florida customers of Citizens Property Insurance Corp. will see their rates go up next year, but the increases will be less than those requested by the state-backed insurer.
Florida Insurance Commissioner Kevin McCarty approved an average 6.2 percent increase for standard homeowners insurance and an average 32.8 percent increase for sinkhole coverage. Citizens Property Insurance originally requested a 21.2 percent rate hike for home insurance and a whopping 447 percent increase for sinkhole policies.
Citizens, which provides property insurance for home and business owners who can't find coverage in the private market, is the state's largest home and business property insurer.
In signing off on the new rates, McCarty took into consideration a new Florida law intended to reduce sinkhole losses for insurers.
"Although more credible data and study is required, these established rates will start Citizens on the path of having a sound rate for their sinkhole risk," McCarty said in a prepared statement.