VOLUSIA COUNTY, Fla. — The Citizens Property Insurance Board of Governors voted unanimously Wednesday to support increasing its rates by 14% in 2025 for residential policies and 10.3% for commercial properties.
On the corner of Flagler Avenue and South Cooper Street in New Smyrna Beach, Flagler Avenue Pizza Company is a busy spot where beachgoers stop for lunch, especially in the summer months.
Owner Luis Barrios says they’ve been serving New York-style pizza to people in the area for the past nine years.
“I love what I do. I love the people. “But, you know, I just hope that at some point we can put a cap on some of these prices and things like that so that it’s, you know, profitable because it’s getting to a point. in which it is not even profitable.
Barrios rents the space where his restaurant operates, and over the years, he said his landlord has seen an increase in his commercial insurance policy, meaning they have had to pass it on to him as an increase in rent.
“It’s increased, you know, our insurance,” Barrios said. “The landlord has increased it, so of course that reflects on us too, because he has to increase it for the rent to go up.”
According to Citizens Property Insurance, the company earns more than $571 million in commercial policy premiums statewide. They are now proposing a 10.3% increase in commercial policy rates starting in 2025.
“I think it affects everyone, because when prices go up, then we have to try to adjust it,” Barrios said.
For a small business like his, Barrios said any increase in the insurance rate ends up impacting his customers.
“We have to keep paying the bills, but everything is going up,” he said. “And then if we try to raise prices, customers are not happy.”
The new Citizens Insurance rates must still be approved by the Florida Office of Insurance Regulation. If approved, they will come into effect on January 1, 2025.