Homeowners in Florida saw their insurance costs decrease in the fourth quarter of 2024, the first such decline since 2022, according to data released by the state. This shift is being hailed by insurance officials as a sign that the market may be stabilizing.
The report, compiled by the state’s Office of Insurance Regulation, indicated a 0.7% drop in the cost of multiperil insurance for single-family homes between the third and fourth quarters of 2024. This equates to an average premium decrease from $3,668 to $3,644. The data represents the first drop since the office began releasing its quarterly Residential Market Share Reports in mid-2022.
Stacey Giulianti, chief legal officer for Florida Peninsula Insurance, which saw a 3.9% decline in average homeowner premiums, credited recent reforms enacted by the Florida Legislature with reducing costs. She stated, “As experts have been predicting for the last few years, the strong actions of the Florida Legislature and governor to decrease frivolous litigation are starting to show solid reductions in personal residential insurance rates. This pro-consumer trend will continue, unless the Legislature makes the big mistake of reversing it in the current session.”
The Legislature is currently considering proposals that would require insurers to reinstate payments for legal fees to policyholders who prevail in litigation. These reforms were enacted in 2022. Under the current system, policyholders typically pay legal fees themselves or from a percentage of any court-awarded amount.
Insurance officials assert that the reforms have helped stabilize costs. Insurance Commissioner Michael Yaworsky noted that since January 2024, 17 companies filed for rate reductions, while another 34 did not propose any increases or changes.
Condominium unit coverage also saw a decline, dipping 1.7% for the first time in the report’s history, falling from $1,737 to $1,707. Condo associations saw their average premiums fall for the second consecutive quarter, dropping by 2.5%. However, these consecutive drops are in consideration of a cumulative increase of 103% between the second quarters of 2022 and 2024.
The 0.7% drop in homeowner costs follows increases in the second and third quarters. Whether the decrease marks the start of a trend remains to be seen.
Companies active in transferring policies from the state-owned Citizens Property Insurance Corp. saw the most significant decreases. These included Manatee Insurance Exchange, American Integrity, Monarch National, Florida Peninsula, and Slide Insurance. Companies taking on Citizens customers are required by state law to maintain Citizens’ rates for the policy’s remaining term.
Manatee Insurance, a relatively new company, saw a significant average premium decline of 11.7% due to its acquisition of Citizens policies. Manatee’s average cost decreased from $3,859 with 12,566 policies at the end of the third quarter to $3,407 with 56,663 policies by the end of the fourth quarter.
While the reduced costs offer some relief, Florida homeowners are still paying some of the highest home insurance rates in the nation. The average premium has increased by 30.2% since the market share report was first issued in the second quarter of 2022. These increases followed reforms introduced that year. Insurance officials had predicted these changes would eventually lead to stabilized rates or even declines.
