Homeowners With Citizens Property Insurance Could See Rate Hike
On average, Policyholders with the state-backed insurer Citizens Property Insurance could see an 8.2 percent rate hike. Blaise Gainey reports the Florida Office of Insurance Regulation will review the proposal Thursday.
James Lynch a chief actuary for the Insurance Information Institute says rate increases are happening across the Florida homeowners’ insurance industry, and mainly for one reason.
"In recent years both the auto and homeowners’ lines of business have incurred billions in unnecessary cost from the abuse of a common tool that in every other state facilitates the efficient settlement of claims. This tool is the assignment of benefits," said Lynch.
Assignment of Benefits or AOB is an agreement that a homeowner will allow a third party to file an insurance claim for them. Lynch and other officials say the abuse of AOB is so bad that some insurance companies are refusing to write policies.