TALLAHASSEE, Fla. – Feb. 15, 2007 – Citizens Property Insurance Corp. plans to send refund checks to all of its 1.3 million policyholders around April 15, one of several price reductions that customers will receive during the next several months.
The state-sponsored insurer disclosed the time frame last week in papers filed with regulators but declined to say Tuesday how much the cuts would be.
Previously, officials have estimated a maximum 5 percent cut. The refunds are the result of the state Legislature’s insurance reform package.
Some Citizens policyholders will be eligible for additional discounts. About 20,000 customers statewide in the high-risk wind account will receive refund checks in the next two weeks, said spokesman Rocky Scott.
Citizens has more than 400,000 high-risk policies, but most customers were not charged the higher premiums previously scheduled for January but subsequently canceled by state lawmakers.
Those premium hikes were as high as 22 percent in South Florida. Beginning Thursday, customers getting renewal notices will see the change reflected.
A small group of policyholders in Citizens personal lines account, which covers about 800,000 policyholders, also will be receiving refund checks as of March 15.
Most won’t get the refund because Citizens already readjusted rates in the account to reflect the elimination of a Jan. 1 rate hike.
Policyholders who are not in the high-risk pool and who are eligible for refunds will see small checks for the most part because their rates did not go up as much as Citizen’s high-risk rates.
Those policies in Palm Beach County refunds could be as little as 1 percent or 2 percent of the total premium. Martin County residents will fare better, with rates going down around 14 percent.
Citizens also has reiterated its plans to offer, by April 1, multi-peril coverage in its high-risk wind pool area, which is east of Interstate 95 in Palm Beach and St. Lucie counties. By issuing the less-risky fire and theft coverage, Citizens will increase its premium base while lowering its overall risk.
Policyholders in those areas now have two policies, one from Citizens for wind damage and a second policy, usually from a private company, to cover other risks.
Citizens’ plan to offer such coverage is subject to the approval of the governor and other top state officials.
Copyright © 2007, The Palm Beach Post, Fla., Randy Diamond. Distributed by McClatchy-Tribune Business News.