First Community Insurance Co. is asking for an average 24.1% rate hike request before the Florida OIR on Sept. 16. | WikiImages/Pixabay
First Community Insurance Co., also known as Bankers Insurance Group, wants to implement a 24.1% rate increase for its homeowners’ multi-peril line of business, which would affect all of its customers in Florida, including those policyholders who own property in The Villages.
First Community Insurance will present its case for the rate increase in a virtual rate hearing before the Florida Office of Insurance Regulation (OIR) at 9 a.m. Tuesday, Sept. 22, the rate hearing notice reported.
Rising reinsurance costs were listed as one reason for the rate hike request.
The company wants the rate to become effective for new policies Sept. 1, with an effective date of Sept. 21 for policy renewals.
The rate filings cover the company’s HO3, HO4 and HO6. For HO3, only existing policies are affected as First Community Insurance no longer issues new policies since the launch of its pristine homeowners program in October 2018. Rate increases on average would rise by 25% for HO3 and HO6 policyholders, while those with HO4 policies would see an average decline of 0.3%.
The top limit of the company’s catastrophe program, including all applicable catastrophe reinsurance, is $335 million, according to the rate filing.
For rate increases above 15%, insurance companies must participate in a rate hearing before the Florida OIR.
Input from the insurer and from interested parties will be received at this public hearing, the hearing notice said.
The Florida OIR conducts rate hearings virtually to follow social distancing guidelines and safety protocols. The rate hearing will be recorded and posted to its website. To view the hearing as it livestreams or to provide public comment, register for the hearing online. Or to listen to the hearing, call 1-877-309-2071, and enter access code 452-216-356 when prompted.
The state office will accept public comments until 5 p.m. Sept. 30 via email at ratehearings@floir.com with “First Community Insurance Company” in the email subject line.
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