July 16, 2005

State regulators granted Nationwide Insurance an average 21 percent rate hike statewide, but South Florida residents could see increases that are somewhat larger depending on where their homes are located.

Homeowners insurance will go up between 20 percent and 34 percent in Miami-Dade and Broward counties. These rates are for Nationwide policies that cover windstorm damage along with general property/casualty coverage for fire and theft.

The company said homeowners who have their hurricane insurance with another carrier, such as Citizens Property Insurance, the state-run pool, will see smaller average increases.

The higher rates will be effective for new policies and renewals after Sept. 8.

State law doesn't allow insurers to recover the money they paid out in claims in the last year by simply boosting rates. Nationwide sought the increases to cover the higher cost of reinsurance for this year as well as the expected greater risk.

Nationwide is the fourth-largest insurer of homes and condos in Florida, with about 300,000 homeowners policies.