The Florida Office of Insurance Regulation has approved Citizens Property Insurance Corp.'s new multi-peril commercial non-residential insurance program.

Citizens began developing the program earlier this year when the Florida Legislature authorized it to assume the policies of the Property and Casualty Joint Underwriting Association.

"Adding Citizens to the mix of companies writing commercial multi-peril insurance is good for the competitive market," Insurance Commissioner Kevin McCarty said in a news release. "Everyone is familiar with Citizens, but this is an important step, because it is the company's first coverage offering away from what had been its main niche of offering homeowners' insurance statewide and commercial wind-only insurance only in the high-risk areas of the state."

The new multi-peril product provides up to $2.5 million in coverage, with policies that will cover damage from wind, fire and other perils traditionally included in a commercial property insurance policy. OIR has approved the policy forms and rates for Citizens to proceed with its program no later than Jan. 1.

OIR has also ordered Citizens to stop selling its wind-only policies - business it had assumed from the PCJUA - in areas of Florida outside the high-risk coastal areas, and approved a 15 percent rate increase for commercial wind-only policies within high-risk coastal areas.

"Although no one likes to see a rate increase in our state's current insurance climate, Citizens needs additional rate in order to better ensure its ability to pay commercial claims," McCarty said.

--------------------------------------------------------------------------------------------------

© 2007 American City Business Journals, Inc. and its licensors. All rights reserved.

Presented by InsuranceHeadlines.com