Fla.’s Citizens Business Plan Receives Approval from Finance Commission

Citizens is one step closer to providing policyholders with more options and premium savings, thanks to approval of the Multi-Peril Business Plan by the Financial Services Commission.

“We are excited about providing our policyholders with more choices and the chance to reduce their premiums. Our analysis shows that thousands of Citizens policyholders who now buy wind-only coverage from Citizens could save more than 10 percent,” Citizens Board Chairman Bruce Douglas said Tuesday.

The plan, which must also be approved by the Legislative Budget Commission, would allow Citizens to offer multi-peril coverage, on a single policy, to its almost 400,000 wind-only policyholders in the High Risk Account.

Chairman Douglas stated that this measure, combined with all of the other changes included in HB 1A (established during a special legislative session in January), should mean rates for some Citizens policyholders in the HRA could be as much as 85 percent lower than they would have been if the January special session had not occurred, citing the 56 percent rate increase that was scheduled for March 1, the rate rollback to 2006 rates and the savings outlined in the business plan.

Source: Citizens Property Insurance Corp.