In an attempt to catch up on the billions of dollars lost last year, state-run insurer Citizen’s Property Insurance Company applied to raise personal property and homeowner policy premiums an average of 7.3 percent, costing policyholders $1.06 billion. The Florida Office of Insurance Regulations approved the new rates Tuesday, Sept. 20.
The driving force behind the cost hike is Assignment of Benefits claims. Thousands of AOB claims on non-weather water damage cost Citizen’s an average of 4 times more or roughly $38,000 over non-AOB claims last year, and with this expense not going away anytime soon, Citizen’s media representative Michael Peltier says customers should expect their premiums to continue to increase for years to come.
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