Florida Citizens Property Insurance Co.'s Board of Governorsapproved a 2016 rate package that will lower rates for nearly half ofCitizens' personal lines policyholders. The package will alsorespond to increased water loss claims and continued inadequaterates for its remaining policyholders along the coast, Citizenssaid in a release about the approval.

The board unanimously voted for an overall rate increase of 3.2%for personal lines policyholders, which will be submitted in Julyto the Office of Insurance Regulation for approval. Most of theincreases will target property owners along the Florida coast andin South Florida, where rates continue to be inadequate, saysCitizens.

Under the proposed rate changes, coastal homeowners will seeaverage multiperil increases of 8.6%, while mobile home owners andcondominium owners will see a 10.2% rate increase. Personal linespolicyholders in Palm Beach, Broward, Miami-Dade and Monroecounties will see the bulk of higher rates under the legislativeglide path established to bring those rates in line with theprivate market.

Policyholders living inland will see rate reductions of 1% formultiperil rates and inland mobile home owners will see 7.4% ratereductions.

In its release, Citizens explains the overall increase is beingfuelled by a continued spike in water loss claims in southeastFlorida and the transfer of coastal policies with nearly adequarerates to private insurance companies. Since January 2014, nearly550,000 policies have been transferred from Citizens to privatecompanies.

As the state's insurer of last resort, Citizens currently covers573,000 personal lines customers. Nearly half of those customers(255,000) are expected to see lower rates.

For more information about Citizens' 2016 rate filing, click here.