DeSantis Announces Insurance Rate Cuts for South Florida
TALLAHASSEE – Florida Governor Ron DeSantis announced Wednesday that a significant number of Citizens Property Insurance Corp. customers in South Florida will experience rate reductions this year. Speaking in Miami, DeSantis stated that 73% of Citizens homeowners policyholders in Miami-Dade County will benefit from reduced premiums, with an average decrease of 6.3%.
“This is good news for Florida homeowners,” DeSantis said at the press conference. “We are committed to providing relief and ensuring a more stable insurance market.”
In Broward County, 52% of Citizens customers with homeowners policies will also see decreases, averaging 4.5%. The complete details of the rate cuts were not immediately available at the time of the announcement.
The Citizens Board of Governors had, in June, approved a proposal to raise rates. The proposal sought an average statewide increase of 13.5% for the most common type of Citizens policy, known as homeowners’ multi-peril coverage. However, the state Office of Insurance Regulation has yet to rule on the proposal.
Citizens Property Insurance Corp. was created as an insurer of last resort. It has grown to become the state’s largest property insurer in recent years due to challenges in the private market. South Florida currently has the largest concentration of the company’s policies.
According to Citizens officials, the state insurer needs higher rates to be competitive, as they often charge less than private carriers. The state has been working to transfer policies out of Citizens and into the private market, since lower rates serve as a disincentive for policyholders to move.
