TALLAHASSEE (CBSMiami/NSF) – More than half of Citizens Property Insurance customers will face rate increases next year, under a proposal going before the insurer’s Board of Governors.

The biggest increases are expected to hit coastal policyholders.

“The overall increase is being fueled by a continued spike in water loss claims in Southeast Florida and the fact that most coastal policies with nearly adequate rates have found coverage with private market insurance companies,” a release from the state-backed insurer said Monday.

Overall, Citizens is proposing an average rate increase of 3.2 percent for personal lines policyholders. However, the actual amount will vary depending on location and home.

The proposal includes an average increase of 8.6 percent on coastal multi-peril homeowner policies, which the release from Citizens says reflects “both the historical inadequacy of coastal rates and the higher risks associated with living along the coast.”

For inland policyholders, a 1 percent drop is proposed in multi-peril rates. Of the approximately 573,000 personal lines customers now with Citizens, about 255,000 should get lower rates, the release from the insurer said.

The New Service of Florida contributed to this report.

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