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Nearly a million and a half Florida homeowners who have the state run insurer of last resort are likely to see larger than expected increases in coming years. The insurer’s board is under fire to return more policies to the private market, which could mean higher rates.

Got a crack in your homes foundation from a suspected sinkhole? Citizens Insurance says it wants a ten percent deductible for sinkhole claims. The insurer  also wants to make it harder for people who can buy insurance in the private market from choosing Citizens because it is cheaper. Private insurers are thrilled. Sam Miller from the Flordia Insurance Council says Citizens rates are a problem. “If you are in South Florida and you can get Citizens coverage for 30 to 40 percent less than the private market, you;’re going to do that,” says Miller.

By law, Citizens rates are only allowed to go up by ten percent a year. But the company  says it would like a 25 percent cap. Insurance expert Don Brown says even private companies are already subsidizing Citizens low rates. “The emphasis should always be to get those people into the market where they are paying the full rate and not counting on their neighbors to pay part of the tab for them.” Brown is an insurance agent and former member of the Legislature.

All of the changes that are being talked about for Citizens have one thing in common. They’re going to cost Citizens customers more money. But there is opposition. State Senator Mike Fasano says the sinkhole deductible could be okay…if. “You know, allow people to make that decision. Allow homeowners to make the decision whether they want to have a ten percent deductible , but also, let it be reflected in their premium,” says Fasano.

The good news for Citizens customers. The 2012 election. Few policy makers have a stomach for huge increases. But, A failure to act will continue to shift  costs to everyone else.

Recognizing the potential difficulty in getting the legislature to do anything in an election year, Governor Rick Scott is asking Citizens to come back with recommendations it can accomplish without legislative approval. Those could include higher deductibles and higher rates for very large condo associations.