Insurance increases on the horizon – InsuranceNewsNet

Continued increases in windstorm homeowners insurance rates have prompted some advocates and elected officials to call on the state Legislature to at least start discussing the growing problem when it meets later this month in a special session.

Property owners throughout the state, including the florida keysare experiencing significant increases in storm insurance from the state’s insurer of last resort, Citizens Property Insurance Corporation. Condo owners in the Keys face at least a 10.7% increase this year and single-family homeowners face an increase of at least 9.9%, according to Citizens Property Insurance Corporation.

As of Thursday, the state Legislature only planned to discuss redistricting of the state’s voting maps, despite calls from advocates and some elected officials to discuss and address ever-increasing windstorm insurance rates. .

“I thought we would really go back this year for insurance,” the Florida Keys House representative said. jim moonneyR-Purple Island, saying. “Certainly something has to be done for the wind storm. … I think we should have the discussion, but I don’t think they will until after the election. … It’s frustrating.”

the florida keys it hasn’t received the credit it deserves when it comes to having one of the strictest building codes in the state, Mooney added.

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Citizens Property Insurance Corporation. held a virtual rate hearing last week and again Fair Insurance Rates representatives at monroe (FIRM) questioned how the company was calculating the fees, especially in Monroe County where building codes are some of the strictest in the state. FIRM sent a written comment to the latest Citizen rate proposal, which is currently before the Florida Office of Insurance Regulation.

“Let me be clear, FIRM opposes any and all rate increases for Monroe County. I am frankly upset that despite the Citizens rate recommendations, the Citizens Board has decided to adopt the maximum allowable statewide increases of 11% for this year and 12% for next year,” said Board President firm board. Mel Mountain wrote. “Citizen Statutory Language: In Section 1 enabling Citizens, the word affordable is used six times and while some on the Citizens board would argue against that, they cannot just ignore the legislation. Additionally, and contrary to accepted actuarial practice, fee decreases are capped at 0%. In essence, there are no rate reductions even if the numbers reflect it.”


FIRM listed “very specific reasons to oppose the latest rate increase,” including concerns about flawed rate models.

Hurricane hazard rates drive the overall Citizens premium for many policyholders, particularly in coastal territories, according to FIRM. What Florida required by law, hurricane losses projected from accepted scientific simulation models are considered. Ciudadanos has used several models accepted by the Florida Commission on Hurricane Loss Projection Methodology. Rate indications have now moved from a median of the four models to using the third and fourth highest hurricane models, according to FIRM.

“The reasoning cited by Citizens for this is adverse selection and increased litigation due to benefit allocation legislation,” FIRM wrote. “There is no adverse selection if there are no elections as in Monroe County Y Monroe County it does not have a benefit assignment problem. This biases the rate indications upwards and is not a true blended rate.

“There should be a confidence factor assigned to each model based on past storms, the actual losses from those storms, and how close these models were to the actual loss numbers. Since 2000, we’ve had about 124 named storms, tropical storms, and tropical depressions, which should provide enough data for each model to report how close their projections actually came to losses.”

In December, Citizens Property Insurance Corp.’s board of directors approved a statewide storm insurance rate increase that is 4% higher than its staff had recommended. The board modified the staff’s actuarially determined recommendations to take into account the wide difference between Citizens’ premiums and those charged by private insurance companies in the same market.

Board members modified a staff recommendation, changing it to an 11% statewide increase for policies that renew from August 1 to December 31, 2022and 12% for policies that are renewed after January 1, 2023to comply with the new ceilings established by the Florida Legislature at the beginning of this year.

DOUBLE OPTION The windstorm rate increases are being proposed at a time when the Keys and Florida residents also face rising flood insurance rates as the Federal Emergency Management Agency has implemented a new rate program called Risk Rating 2.0.

The 2.0 risk rating will affect most Florida Keys National Flood Insurance Program (NFIP) policyholders. FEMA fundamentally changed the way you will rate a property’s flood insurance risk and prices with its Risk Rating 2.0 methodology. Current NFIP policyholders throughout Monroe County You will see changes to your policy when you renew. Flood Risk Rating 2.0 is a national assessment FEMA initiative, not only in Monroe County. Monroe County. Monroe County’s participation in the CRS may help offset some of the increases policyholders in unincorporated areas will see from Risk Rating 2.0.

In 2021, there were 30,799 active NFIP policies across Monroe County according to FEMA data. According to FEMA data, 90.9 percent of insureds will see an increase and 9.1 percent will see a decrease or no change. Individual policyholders should contact their insurance agent to find out how this will affect their premium.

“Risk Rating 2.0 impacts are heavily skewed against coastal communities. The County will continue to be a part of the national discussion and its effects on Monroe County insured,” said Monroe County Legislative Affairs Director Lisa Tennyson. “Protecting affordable flood insurance is the number one federal legislative priority for Monroe County and has been since the Biggert-Waters reform in 2012.”

FEMA’s new methodology for determining NFIP policy premiums reflects a property’s individual flood risk, including the frequency and types of flooding, such as storm surge, coastal erosion and heavy rainfall, and the distance to a water source along with property features such as elevation. and the cost to rebuild. An elevation certificate on file with an insurance agent can help in some cases.

Under federal statute, the NFIP, a federal program, limits annual increases to 18% for primary residential properties and 25% for second homes and commercial properties. Risk Rating 2.0 increases cannot exceed rate caps; however, Tennyson stresses that current annual rate caps are already unaffordable for most Monroe County home owners

“Nationwide, the average policy is about $800; in it the florida keyspeople pay $3,000, $4,000, $5,000 for their policies. Annual rate increases of 18% are unsustainable,” he said. “Monroe County’s primary focus remains on lowering rate caps to less than 10%.”

With a maximum benefit of $250,000, the actual beneficiaries of this program are middle-income and working homeowners and commercial property owners in coastal communities. Most multi-million dollar homes in coastal areas are privately insured.

FEMA zip code data for existing single-family home policies can be found at http://www/

More information about the FEMA program can be found at


There is good news in Monroe County when it comes to flood insurance rates.

Through the accomplishments of county government staff and the Monroe County Community Rating System (CRS) consultant lori lehrNFIP policyholders in unincorporated businesses Monroe County You’ll see a 35% discount as policies renew. taking effect April 1stthe Class 3 rating for Monroe County increases annual flood insurance savings for 14,123 policyholders in unincorporated areas Monroe County for $7.8 million annually. There will be an average annual savings of approximately $551 by insured. Cumulatively to date, the County has saved policyholders approximately $26.8 million for your participation in this program, according to the county.

“Unincorporated Monroe County joined a very select group of other communities in a Class 3 or lower designation,” he said. emily schemper, Director of Planning and Environmental Services. More information about the local CRS program can be found at

Compared, key West is Class 5 and receives a 25% discount. Purple Island is a Class 6 and receives a 20% discount. Layton is Class 6 and will receive a 20% discount. Marathon is a Class 6 and receives a 20% discount and key colony beach is a Class 7 and receives a 15% discount. Individual policyholders are experiencing the direct benefit of discounts on their individual flood policies.

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