Florida Property Insurance Premiums to Decrease, but Relief is Modest
After several years of escalating property insurance costs, homeowners in South Florida are poised to receive some relief in 2025. Governor Ron DeSantis recently announced that rates for Citizens Property Insurance, the state-backed insurer, will be reduced for a significant portion of its customers in the region.
Those insured by Citizens in Miami-Dade County are expected to see an average reduction of 6.3% in their rates, impacting 73% of those policies. In Broward County, 50% of policyholders will experience an average decrease of 4.5%. Statewide, only 20% of Citizens-insured individuals will benefit from these cuts, indicating that relief will be concentrated in South Florida.
Experts, however, caution the reductions might be less than expected. The reductions are modest in comparison to the 20% to 30% increases that have affected homeowners in recent years. Additionally, many homeowners will have to wait to benefit from decreased rates. According to estimates, homeowners could start seeing discounts on March 1, 2025. Those renewing policies before that date won’t receive the discount until the following year.
“They still do not have the exact date, but we believe it will be effective on March 1, when property owners will start receiving those reductions,” explained Dulce Suárez-Resnick, vice president of Agente Acentria Insurance, in a statement to Telemundo 51.
Factors Driving the Rate Reductions
Governor DeSantis attributes the rate decreases to increased competition within Florida’s insurance market. The state has seen 11 new companies enter the sector in the last two years. This influx has helped stabilize the market after a period where numerous insurers exited due to high claims and litigation. Recent legislative reforms have also contributed significantly to the improvements. These include measures aimed at curbing excessive litigation and eliminating fraud related to roofs.
Another factor to consider is the “Inflation Guard,” an automatic adjustment in policies that increases coverage annually. Experts suggest that this can result in an effective reduction that may be less than the listed percentage decrease. A 6.5% reduction, for example, could be significantly offset by this built-in increase.
Impact on Homeowners
While the rate reductions provide some welcome news, the actual savings for homeowners may vary. In Broward County, the 4.5% reduction may not result in noticeable savings for some homeowners, but they also won’t be facing a price increase, according to Suárez-Resnick.
Broader Market Stabilization
The stabilization of the insurance market isn’t limited to property policies. The governor also announced that several major auto insurers, including Geico, State Farm, and Allstate, have requested to reduce their rates statewide. These companies have submitted requests to lower premiums by 6% to 10%, which would benefit thousands of Florida drivers.
“We are seeing that the reforms are beginning to take effect. More companies are entering the market, and several insurers have notified the Office of Insurance Regulation (OIR) that they will be reducing premiums,” stated Danny Pérez, Speaker of the Florida House of Representatives.
With these changes, Florida hopes to establish a more stable and affordable insurance market for both homeowners and drivers, reversing years of escalating policy costs.
