Florida homeowners to see insurance relief as premiums drop
Florida homeowners, particularly those in Miami-Dade and Broward counties, will see long-awaited relief on their insurance premiums as Governor Ron DeSantis announced rate decreases for many policyholders under the state-run Citizens Property Insurance Corp.
During an event in Miami on Wednesday, DeSantis shared that 73% of Citizens customers in Miami-Dade County will receive a premium reduction, with an average decrease of 6.3%. In Broward County, 52% of policyholders will see rate cuts, averaging 4.5%. These reductions come as part of a broader effort to stabilize Florida’s insurance market, which has struggled in recent years due to high litigation costs, natural disaster risks, and inflation-driven price hikes.
“Today I announced that Citizens Property Insurance will be instituting homeowners’ insurance premium decreases for three-quarters of Miami-Dade, and statewide decreases averaging 5.6%,” said DeSantis. “The overall market has stabilized, and in addition to these decreases, data suggests that in 2024, Florida had the lowest average homeowners’ premium increases in the nation.”
A changing insurance market in Florida
The rate reductions come after years of volatility in Florida’s property insurance sector, where homeowners faced rising premiums, and insurers struggled to stay afloat. Citizens Property Insurance, originally created as an insurer of last resort, has grown into Florida’s largest property insurer due to a shrinking private market.
However, DeSantis and state lawmakers have worked to attract private insurers back to the state, with 11 new companies entering the market in the past two years. State officials have also pushed policies aimed at reducing legal costs and fraudulent claims, such as eliminating one-way attorney fees and restricting abusive Assignment of Benefits (AOB) practices.
As a result, Florida has seen a significant decline in homeowners' premium increases. While the average rate increase in 2023 was over 21%, projections for 2025 suggest that figure will drop to just 0.2% statewide.
Impact on homeowners
The announcement is particularly good news for South Florida residents, who have historically faced some of the highest premiums in the state due to hurricane risks and an expensive legal environment. With Citizens' rates decreasing for a majority of policyholders in Miami-Dade and Broward, many homeowners could see immediate financial relief.
However, there are lingering concerns. The Citizens Board of Governors had originally proposed a 13.5% rate increase statewide, arguing that the state-run insurer needs to charge higher rates to remain financially sustainable and to encourage policyholders to switch back to private insurers. The Florida Office of Insurance Regulation has yet to issue a final decision on that proposal.
Auto rates also decreasing
In addition to home insurance relief, DeSantis announced that auto insurance rates are also declining across the state. Companies like GEICO (-10.5%), Progressive (-8.1%), and State Farm (-6%) have all filed for reductions, offering further financial relief to Florida drivers. The drop in rates follows legislative reforms aimed at reducing insurance fraud and litigation related to auto glass repairs.
What’s next?
As Florida continues its efforts to stabilize the insurance market, homeowners in Miami-Dade and Broward should review their policies to see how the changes affect them. Meanwhile, state officials remain focused on bringing more private insurers into the market to provide long-term rate stability.
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