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Nearly half a million Citizens Insurance Policy holders can expect rate increases of close to ten percent in the coming year. Water losses in south Florida are driving the increase. A third of those Citizens customers facing hikes are being asked if they want to leave Citizens by private companies, but as Mike Vasilinda tells us, there’s no guarantee a private company won’t hike your rate far beyond what Citizens is charging.

6 insurance companies have been authorized to take over more than 167 thousand Citizens policies between now and the end of June. The decision to change is up to Citizens customers, but Spokesman Michael Peltier says those customers shouldn’t make the decision lightly.

“And in many cases, a private offer may include many things that Citizens policies don’t. So its real important, we think,  for people to speak to their agents” says the Citizens Spokesman.

One reason to leave Citizens: In the case of extreme losses, homeowners could see surcharges of up to 45 percent.But one reason to stay is that Citizens rate increases are capped at ten percent.

This year and last,  State  Lawmakers tried to cap private take out company increases at ten percent after they heard dozens of horror stories.

State Senator Anitere Flores (R-Miami) told her colleagues on March 11th “What do we tell constituents that are in a traditional take out offer that their rates end up going up exorbitantly?”

But capping take out company increases did not pass. Consumer advocate Brad Ashwell says not limiting take out rate increases was a major failing for consumers.

“Well, the real issue is that consumers are getting hit after they leave  Citizens and go into these private policies. if they con’t realize  they’re getting pushed into these is even worse.” And that’s something the legislature failed to address” says the legislative director for the Florida Alliance for Consumer Protection.

Citizens customers who do leave, only to get stuck with higher rates in the private market can go back. But only if the available polices being written by private companies cost at least 15 percent more than Citizens is charging at the time.

One Citizens bill awaiting the Governor’s signature requires Citizens, not private companies to notify policy holders that they are subject to being taken out of Citizens unless they act to start in the insurers of last resort. Currently the notice comes from the take out company is and often viewed as junk mail.