Citizens backs off huge sinkhole rate hike and proposes phased plan of increases

The news that Citizens had requested and seemingly been approved to increase sinkhole insurance coverage rates by as much as 2,000% did not sit well. A town hall type meeting was held at the Tampa Convention Center to allow residents and supporters of homeowner’s rights an opportunity to discuss the issues. There was a good turn out and apparently something worked because Citizens has seemed to back off the issue slightly. The board voted to increase sinkhole coverage premiums by 50% for the year with the ability to review the rates annually. This means that Citizens will be able to gradually increase the rates for the coverage eventually making it unaffordable. For many Florida homeowners, even a 50% rate increase will still make sinkhole coverage unaffordable but, in this industry we have to take whatever victory we can, no matter how small.