Citizens’ Property Insurance Corporation announced it intends to increase premiums by approximately 20% for buildings with a replacement value over $10 million. Citizens’ Property Insurance is the state-run, not-for-profit insurer of ‘last resort’ in Florida, created in 1992 and operating pursuant to Section 627.351, Florida Statutes. It insures over 23,000 commercial residential properties in Florida and recently issued an Agent Technical Bulletin notifying the public of its intent to increase premiums for policies affording coverage to properties valued in excess of $10 million. Many policyholders will see rates increase by 20%. Insurance premiums are often the most significant line item in a community association budget. Communities already struggling with shortfalls and bad debt need to take the increases into account when preparing budgets for the upcoming year. This news comes at a time where two insurance companies were recently forced into receivership to be liquidated. The Florida Department of Financial Services has been appointed as receiver for American Keystone Insurance Co., a company that entered the Florida market in 2007 and wrote policies covering homeowners, condominium owners and condominium associations. According to the Department’s website “in accordance with the terms of the liquidation order, all policies are canceled at 11:59 p.m. on November 8, 2009, unless otherwise canceled earlier in the normal course of business.” The Department of Financial Services has been appointed and currently serves as receiver for 50 insurance companies. Florida Insurance Guaranty Association (“FIGA”) will adjust and pay claims associated with the American Keystone policies, subject to its limitations and the claims filing deadline. FIGA protection is only available for admitted carriers. If you are not aware of the differences between admitted and non-admitted (surplus lines) carriers, please contact your community association attorney or insurance professional.