Citizens Insurance Approves Rate Increases

TALLAHASSEE (CBSMiami/AP) – South Florida property owners who rely on state run Citizens Property Insurance will be paying more for it next year.

At a meeting of Citizens' board in Orlando, the directors approved an average hike of 32.8 percent on sinkhole policies for homeowners and 6 percent for standard coverage. The increases affect nearly 1.5 million policyholders and could cost some homeowners who have sinkhole protection up to several hundred dollars more each year.

The board initially sought higher rates, voting in September to cap rate hikes for sinkhole coverage at 50 percent in 2012. But state regulators cut that to a statewide average of 6.2 percent for standard coverage and a cap of 32.9 percent for sinkhole policies.

The Citizens board also voted to go ahead with the approved rates, but not phase in the increases as first planned.

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