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Homeowners With Citizens Property Insurance Could See Rate Hike

Clyde Robinson

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.

Blaise Gainey is a State Government Reporter for WFSU News. Blaise hails from Windermere, Florida. He graduated from The School of Journalism at the Florida A&M University. He formerly worked for The Florida Channel, WTXL-TV, and before graduating interned with WFSU News. He is excited to return to the newsroom. In his spare time he enjoys watching sports, Netflix, outdoor activities and anything involving his daughter.