PINELLAS COUNTY, Fla. — The Citizens Property Insurance Corporation's Board of Governors voted to approve a new rate package for 2025.
That means customers could see up to a 14% increase.
"You know, we don't feel like we have much of a choice at this point, so we are just dealing with it as best as we can," said Frances Druding, a resident in Pinellas County.
That's how Frances and Jason Druding feel when it comes to home insurance options.
"With the cost being so much more and with everything else going up, that's definitely not something that helps homeowners," said Frances Druding.
They have Citizens Insurance, which was meant to be a last-resort insurance option. However, with many companies leaving the state and prices rising, it's become the largest insurance company in Florida.
"With no competition, of course, anyone could leverage higher prices, and there's not a lot you can do," said Jason Druding.
Insurance rates have been going up over the last several years, but Citizens Insurance customers could see another spike.
On Wednesday, the Citizens Property Insurance Corporation voted to approve a new 14% rate increase for 2025.
"If insurance continues to rise up, then home ownership is going to continue being out of reach for a lot of people," said Jason Druding.
Right now, Citizens serves over 1.2 million customers, and the Insurance Information Institute said the company is taking on too much risk... and should only serve 400,000 to 500,000 customers.
The company said implementing a 14% rate increase will help.
"They need to close the gap between what they charge and what the private market charges so those rates are much closer on average, meaning consumers will have an incentive to go elsewhere and not just take citizens," said Mark Friedlander, with the Insurance Information Institute.
The CEO of Citizens said the rate hike will help make the market more competitive in Florida, bringing in other insurance companies.
Frances Druding understands why the company is increasing rates but wants more coverage, too.
"You know it's unfortunate, but I also understand that inflation has caused a whole mess of trouble, and then on top of that, the climate is not what it used to be as well, so we are hit with a lot of storms that were unexpected," said Frances Druding.
Sofia Bereza considered Citizens insurance before and said no matter where she looks, the prices are extreme.
"Paying because you're paying for the paradise…of course. I agree. We have to pay a little more…but how much more? Too much. It's too much," said Bereza.
The next step is for Citizens to send the hike recommendation to the state for review.
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