Sinkhole rates may be phased in

Citizens Property Insurance Corp. board members will meet Monday to discuss pending rate hikes for sinkhole policyholders, which may raise costs for some customers by as much as 2,200%, according to the Florida News Service.

In July, Citizens announced it would increase rates for sinkhole policyholders later this year. Statewide, Citizens policyholders will see rates increase by an average of nearly 450%, while customers in the Orlando area could see their bills go up by 2,226%.

At the Monday meeting, board members will discuss whether those rate increases should be phased in or applied at once. On Tuesday, Citizens will hold a public hearing in Tampa related to the rate hikes.

In 2010, Citizens collected $32 million in premiums on sinkhole insurance, but paid out $250 million in claims, Florida News Service reports.