Nationwide big homeowners rate hike

By David Sedore



Palm Beach Post Staff Writer



Wednesday, January 26, 2005



Nationwide's homeowners insurance customers statewide, particularly in Martin County, might want to duck and cover.



The Columbus, Ohio-based insurance giant is asking state regulators for permission to jack homeowners insurance premiums by a statewide average of 28.3 percent, according to a filing with the Florida Office of Insurance Regulation.



But in Martin County, Nationwide wants to nearly double rates, asking for approval to raise premiums by 89.3 percent. In Palm Beach County, Nationwide is proposing a 33.1 percent increase, and in St. Lucie County, the carrier wants a 9.2 percent increase. Nationwide is also seeking to raise condominium and renter insurance rates.



If approved, the higher rates would go into effect on July 23 for all customers.



Nationwide is the fourth-largest homeowners insurer in Florida, with more than 279,000 policies. Market share numbers for Palm Beach County and the Treasure Coast were not available.



Valerie Beynon of the Florida Office of Insurance Regulation said Nationwide is the 24th insurer to ask to raise homeowner rates since Hurricane Jeanne hit the state in late September.



A Nationwide spokesman declined to comment on the rate hike other than to confirm that the filing was made.



"Given the competitive marketplace, we have a policy not to publicly discuss our pricing strategy," Nationwide spokesman Joe Case said Tuesday. The company has received 97,000 property damage claims through Dec. 31 as a result of the four hurricanes that hit Florida in August and September, Case said. The company estimated it will pay about $850 million to settle those claims. That data was included to justify the rate hike request, according to the firm's filing with Florida insurance regulators.



Insurance companies can't legally raise premiums to recoup losses, but they can compare hurricane losses with what they projected before a storm and use that data to justify a hike.



On Dec. 31, Citizens Property Insurance Corp., Florida's insurer of last resort, asked to raise premiums by an average of 19.7 percent. The state-sponsored pool by law must charge more than any private insurer.



State Farm, the largest carrier in Florida, earlier received permission to hike rates by 5 percent.



Allstate Floridian, the state's No. 2 private insurer, hasn't filed to raise rates as of Tuesday.



Generally, the Office of Insurance Regulation rules on rate requests within 60 days.