Citizens Property Insurance

With Florida’s property-insurance system in turmoil, state lawmakers could be poised to take major steps to try to stabilize the market during a special legislative session next week.

Insurance regulators are considering whether to lift a $700,000 cap on Citizens policies as homeowners struggle to find coverage.

The state-backed Citizens Property Insurance Corp. has surpassed 1 million policies for the first time since 2014. Citizens has been absorbing an influx of policies as private insurers drop customers and push for large rate increases.

Amid fears that a financial-ratings agency will downgrade numerous property-insurance companies, Florida regulators Wednesday announced a stopgap plan to try to make sure homeowners can maintain coverage.

The Florida Office of Insurance Regulation on Friday approved an average 6.4% rate increase for homeowners with “multiperil” policies — by far the most-common type of policy.

Rate changes would vary, with owners of condos and mobile homes seeing a larger increase.

The Florida Office of Insurance Regulation has approved new rates for Citizens Property Insurance Corp. that will increase average rates for residential…