An insurance company protecting some of the most expensive homes in Florida is asking the state for a 37 percent rate hike. The Office of Insurance Regulation held a rate hike hearing Friday in Tallahassee.

Cincinnati Insurance and Indemnity has more than 14,000 policyholders in Florida. The company insures thousands of high-end properties and million dollar homes.

State Office of Insurance Regulation spokesman Ed Domansky says the company passed up a chance to lower its risk.

"The fact that they did not purchase the additional reassurance from the catastrophe fund and they also included an expense for that in their rate filing. So they didn’t purchase it, so the question remains one, should they have included that expense. Also had they purchased that cheaper level reinsurance would the rate they’re requesting be less?”

O-I-R is also questioning the model Cincinnati insurance used to estimate its risk.

The insurer says it needs to raise rates to prepare for a major hurricane. Since January 2007 when new insurance legislation became law, the state has turned down every double digit rate hike.