Citizens rate cut brings relief for some, frustration for others

FLORIDA, (WINK)— A state-ordered rate cut for Citizens Property Insurance is welcome news for hundreds of thousands of Florida homeowners – but for some, the timing is raising new questions.

Florida regulators recently ordered Citizens to lower rates by an average of 8.7%, with some policyholders seeing cuts as high as 10%, starting June 1.

Amir Neto, Director of the Regional Economic Research Institute at Florida Gulf Coast University, said the rate cut reflects a broader, positive shift in Florida’s insurance market.

“Over the last couple of years, we have seen more companies coming back to the Florida market, which means rates have come down,” he said.  “With more companies coming…we should expect better rates.”

But two Southwest Florida homeowners told WINK News the change is stirring confusion – especially for people who were already forced off Citizens under state law.

For years, many homeowners turned to Citizens not by choice, but because it was the only affordable option left after private insurers pulled out or raised prices following major storms like Hurricane Ian.

Nicholas Neubacher, who lives in San Carlos Park, said he ended up with Citizens after his previous insurance company collapsed.

“We just took it, trying to save as much money as possible.”

He said Citizens handled his Hurricane Ian claim reasonably well.

“They took care of us decent enough after the storm.”

But in recent years, the state has moved to shrink Citizens’ customer base. Under state law, if a private insurer offers coverage within 10% of a homeowner’s Citizens rate, that policyholder must leave Citizens, even if they want to stay.

Nicholas received notice he would be transferred to a private company this spring, with a higher premium.

“It was going to go from about 3200 to almost 3900.”

Now, with Citizens rates going down, he’s wondering whether that changes anything for him.

Another homeowner, Adam Constantino, says he was already forced off Citizens before the rate cut was announced –  and he’s frustrated watching from the sidelines.

“Everybody said, ‘get off Citizens.’ Now their rates are going down.”

For Adam, the savings would have mattered.

“I want the money in my pocket.”

The state-ordered rate reduction takes effect June 1, but it’s not clear whether homeowners who were already scheduled to transfer off Citizens will be re-evaluated under the new, lower rates.

WINK News reached out to Citizens Property Insurance to ask whether those policyholders will get a second look –  or whether the transfers will still move forward as planned.

We are waiting for a response.