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Office Establishes Citizens Rates for Condominium Associations,
Commercial Buildings, Rental Properties and other structures

TALLAHASSEE, Fla. – Florida Insurance Commissioner Kevin McCarty today signed an Order ( establishing updated rates for Citizens Property Insurance Corp. (Citizens). Citizens is the state-run insurer, providing property coverage to those who cannot find affordable coverage in the private market.  

The Office approved filings for Citizens homeowners rates on September 23rd. This new Order reflects updated rates for condominium associations, commercial buildings, rental properties and other structures.

The approved rates vary slightly and contain both increases and decreases from the rates Citizens requested. This was the result of using a different methodology to calculate rates. Specifically, Citizens used the 10 percent cash build-up factor in the portion of the filing that is uncapped; the Office used 12.5 percent, based on prospective costs for 2011. Additionally, the Office$(Bfs rates reflect Citizensf loss trend, based on history of frequency and severity of non-catastrophe claims.

The following are the approved statewide average rate increases included in the Order:

Dwelling Fire (PLA) and (HRA)
Dwelling Fire: 10.4 percent approved                          [Citizens filed 9.8 percent]
Condo and Ex Condo Commercial Residential (CLA)
Commercial Residential Ex-Condo: 0.7 percent approved       [Citizens filed 0.7 percent]
Commercial Residential Condo: 8.1 percent approved            [Citizens filed 0.7 percent]
Condo and Ex Condo Commercial Residential (HRA)
Condo Association Wind-Only: 11.0 percent approved           [Citizens filed 11.5 percent]
Condo Association Ex-Wind: 11.3 percent approved              [Citizens filed 11.7 percent]
Commercial Nonresidential (HRA)
Commercial Nonresidential: 9.9 percent approved                  [Citizens filed 9.1 percent]
Commercial Nonresidential (CLA)
Commercial Nonresidential: no change                                   [Citizens filed: no change]

The effective date varies between January 1, 2011, and February 1, 2011, depending on the type of coverage.

Citizens provides property insurance coverage in Florida to individuals and businesses that meet specified statutory criteria. Citizens provides its coverage through three accounts. These accounts are separate for virtually all financial purposes, including deficit calculation and assessments. Two of the accounts – the PLA and CLA – are combined for purposes of Florida Hurricane Catastrophe Fund coverage and bond security. A summary of the three accounts is as follows:
  • High-Risk Account (HRA); the HRA provides wind-only and multiperil coverage for policyholders (residential and commercial) in defined geographic areas near the coast.
  • Personal Lines Account (PLA); the PLA provides comprehensive multi-peril policies to homeowners throughout Florida.
  • Commercial Lines Account (CLA); the CLA provides commercial residential (condominium association, etc.) and commercial nonresidential wind-only and commercial nonresidential multi-peril coverage throughout Florida.
The following exhibits are also available:
About the Florida Office of Insurance Regulation
The Florida Office of Insurance Regulation (Office) has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets. For more information about the Office, please visit

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