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Fla. Regulators Weigh Property Insurance Rate Hikes

First Community Insurance Co. wants an average 24.5% increase largely targeted to its “legacy” customers – owners under an older program rather than its newer one.

TALLAHASSEE, Fla. – On Tuesday, Florida regulators delved into potentially large increases in property-insurance rates for customers of First Community Insurance Co. The Office of Insurance Regulation held a public hearing on a proposal that would lead to an average 24.5% rate increase statewide, though actual increases would vary, depending on factors such as locations of properties and types of policies.

For example, the company is seeking an overall 25.4% increase for homeowner “multi-peril” policies, an overall 25.9% increase for condominium-unit policies and an overall 0.3% increase for tenant policies, according to information presented during the hearing.

For homeowners, the increases would largely be targeted at renewal policies under what the company calls a “legacy” program rather than policies written more recently under a newer program.

Company officials said during the hearing that the proposed increases stem, at least in part, from higher costs for reinsurance, which is coverage that insurers buy to help pay for such things as hurricane damage.

The Office of Insurance Regulation is expected to decide whether to approve the rate hikes in the coming weeks.

Source: News Service of Florida