Sometimes it feels like there’s not a whole lot of nice things to say about your property insurance policy, especially when you see the bill sitting in your mailbox. If this describes your outlook regarding Citizens Property Insurance, you might be humming a more upbeat tune soon. Taking effect in 2015 is a new rate package that could decrease your costs significantly. Of course, this won’t hold true for every policy owner, so to make sure you know exactly what’s heading your way when the calendar year flips, let’s spend some time covering this rate change and what it means for your home or business moving forward.
A Look at What Happened
To help catch up those who are just now hearing about the Citizens Insurance rate decrease, the Insurance Journal offers an excellent overview of the event. As the report explains, this leading insurance provider plans to lower rates for nearly 70 percent of its 928,000 customers for the first time in several years. Considering that these previous four years have seen a steady rise in the cost of coverage, this is definitely welcome news for many.
Unfortunately, the other 30 percent of customers won’t fair as well once the policy takes effect in the first quarter of 2015. However, for the majority of those currently with an insurance provider, it’s a step in the right direction when it comes to easing the financial burden of maintaining property coverage.
Welcome Relief for Some
On the positive side of this rate shift, residential renters stand to save the most, according to Mary Ellen Klas of the Tampa Bay Times. These policyholders could reduce their bills by up to 22 percent under the new system, while standard homeowners have the potential to reduce the cost of coverage by up to six percent. Of course, it’s important to temper your expectations because these numbers represent the upper limits of the savings. On average, the total reduction for Citizens Insurance customers that fit into these categories should hover around 3.2 percent.
The Other Side of the Proposal
As for other policyholders that currently do business with Florida’s largest property insurer, the news regarding this rate change isn’t nearly as welcome. As James L. Rosica of the Naples Daily News reports, condominium and commercial property owners could see a spike in the cost of insurance that averages out to an increase of nine and eight percent, respectively. Additionally, mobile homeowners who require wind-only coverage could see an increase of up to 10 percent, while sinkhole policyholders in Hernando County face this same percentage jump as well.
What Should You Do Now?
There’s no denying that this is a lot of information to digest in one sitting, especially if you hold policies in multiple categories. However, if you have any concerns about how this rate decrease (and increase for some) affects you personally, don’t be afraid to consult with a professional. With this kind of guidance helping you along the way, you’ll have everything you need to decide whether sticking with Citizens is the right call, or if it’s time to leave this government provider behind and start shopping around for a private coverage plan.
