Florida’s largest property insurer is discussing whether to eliminate caps on rate hikes and limit what homeowners can do if they have water damage.
The state-created Citizens Property Insurance is debating changes in order to combat lawsuits tied to water damage claims.
Citizens Property Insurance President Barry Gilway said Wednesday that a rise in lawsuits over claims is “insane,” particularly in South Florida.
Gilway said claims are rising even though the number of Citizens policyholders is getting smaller. It is projected to drop to under 500,000 by the end of this year.
Gilway said it may be time to get rid of Florida’s current 10 percent-a-year cap on premium hikes.
Citizens Board of Governors is also asking for permission from state regulators to place limits on how much homeowners can spend on emergency repairs.
Republished with permission of the Associated Press.