Rate reductions could bring relief to Florida homeowners after years of climbing costs
For years, Florida homeowners have felt the squeeze of rising insurance premiums, with rates skyrocketing and some families struggling to keep coverage. But in a major shift, Florida Peninsula Insurance—one of the state’s top ten insurers—is seeking the largest premium decrease in its 20-year history.
What the numbers mean for homeowners
According to Mark Friedlander, spokesperson for the Insurance Information Institute, the average Florida home insurance premium is currently $3,800—a figure that, surprisingly, still places Florida behind eight other states in terms of cost, including several in Tornado Alley. Even better news: premium hikes have nearly leveled off, with this year’s average increase at only 0.5%—the lowest in the U.S. for the second year in a row.
Florida Peninsula has now asked the Office of Insurance Regulation (OIR) to approve an average 8.4% rate reduction for homeowners and a 12% decrease for condo owners, citing legislative reforms as the driving factor. If approved, the reductions could go into effect on October 31, 2025, though policyholders would see changes at their next renewal cycle.
Why relief may be on the horizon
Clint Strauch, president of Florida Peninsula Insurance, says recent legislative reforms have reduced frivolous lawsuits and inflated claims, giving insurers the ability to pass savings back to customers. “This rate reduction shows that the reforms have successfully addressed the root cause of increasing insurance premiums in Florida,” Strauch explained.
The OIR is still reviewing the proposal, but Florida’s insurance market is showing signs of stabilization. Regulators recently announced that a 15th company has entered the state’s market since reforms were enacted, signaling stronger competition. Even Citizens Property Insurance, the state’s insurer of last resort, has seen policyholder numbers decline as more Floridians shift to private insurers.
For homeowners still frustrated with high premiums, Friedlander advises one key step: shop around. With more companies offering coverage, families may find better deals without sacrificing protection.
After years of uncertainty, Florida’s insurance market may finally be turning a corner—and homeowners could soon feel the relief in their wallets.
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