Hearing on Florida Residents’ Near-Max Rate Increases Set for March 31

The Florida Office of Insurance Regulation will hold a hearing on Thursday, March 31, to look at a request by Residents Property Insurance Corp. for a near-maximum rate increase for many of its policies.

Residents, limited by its statutory “glidepath” to a maximum increases of 11% this yr, in December filed for near that on 14 lines of insurance, including 10.7% for homeowners multi-peril; 10.8% for dwelling fire; and 11% for industrial non-residential, wind-only, in keeping with the OIR notice filed with the Florida Administrative Register.

If ratified by the state’s insurance commissioner, the upper rates for many lines would kick in August 1.

The increases were signaled late last yr, when the Residents Board of Governors overrode a staff suggestion of a 7.3% increase for homeowners policies. Florida law had limited Residents’ rate hikes to not more than 10% per yr however the Legislature modified that in 2021 to permit incrementally higher rates until overall increases reach 15% in 2026.

Residents officials and state lawmakers have grown increasingly concerned concerning the state-backed insurer’s rapid growth, which, in case of major disasters, could wipe out a $6.5 billion surplus and put taxpayers on the hook, some have said. The corporation has instituted a depopulation plan, which incorporates many more inspections of properties, together with other measures. Bills that will have required policyholders to change to non-public carriers if premiums were barely higher didn’t pass on this yr’s regular legislative session.

The virtual rate hearing is ready to start at 1 p.m. Eastern time. Access is on the market here, or stakeholders may listen by phone. The decision-in number is 1(866)901-6455 and the access code is 696-660-667.

Written comments can be accepted through April 14. They will be emailed to RateHearings@floir.com; the topic line of the e-mail should read, “Residents Property Insurance Corporation,”

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