Rate increases for Castle Key Insurance and Castle Key Indemnity have been approved and take effect for new and renewing policies Nov. 28, the Florida Office of Insurance Regulation said Friday. The increases were smaller than what the companies had requested.
Castle Key Insurance was approved for an average increase of 17.8 percent. The company had requested a 33 percent hike. Castle Key Indemnity can raise rates by 17.8 percent, a notch lower than its request for a 17.9 percent increase.
Combined, these Allstate subsidiaries are the state’s third-largest private home insurers. As of March, Castle Key Insurance had 147,469 policies in force statewide. Castle Key Indemnity has 81,783.
Rate increases will vary based on location, and the price of some customers’ premiums will actually decrease.
“The rate increases were primarily due to increases in non-hurricane losses and increased reinsurance costs,” the Office said in a statement.
In addition to the rate increase, the company will no longer apply voluntary discounts to the hurricane portion of the premium, which could raise premiums further.
The discounts are for fire and burglar devices, multiline auto and home policies, new homes and for policyholders over 55 and retired.
