Florida Home Insurance Rates Rise Slightly After Period of ‘Historic’ Lows
A new report from the Florida Office of Insurance Regulation shows that home insurance base rates have increased by 0.3% in the first quarter of 2025. This latest rise comes after a period of significant reforms in the state’s insurance market, which led to record-low rate filings in 2024.
The cumulative effect of the last 10 quarterly reports reveals a substantial increase in home insurance rates, with statewide rates rising about 30% and Central Florida rates surging 40% since 2022. This was the year the Florida Legislature implemented what lawmakers termed ‘historic’ insurance market reforms aimed at recovering from the state’s insurance crisis.
The reforms made it more difficult for customers to sue insurance companies, incentivizing more private carriers to operate in Florida. This move was designed to relieve Citizens Property Insurance Company, the state-funded insurer of last resort, which had been carrying most of Florida’s policies and associated liabilities.
Florida’s Insurance Commissioner Michael Yaworsky noted that ‘the impact of past legislative reforms continues to show progress in our current market.’ He emphasized the need to continue on this path and avoid reversing the reforms. The Office of Insurance Regulation reported that in 2024, homeowners insurance costs actually fell by 0.7%, and a 12th new insurance company entered the Florida market, indicating a healthier insurance landscape.
Mark Friedlander, Director of Communications at the Insurance Information Institute, supports the reforms and highlights their positive impact. He pointed out that Florida achieved the lowest average rate filing in the U.S. in 2024, with a rate of 1.0%, while most states had double-digit rate filings.
Factors Influencing Insurance Rates
Friedlander explained that while base rates are influenced by factors like inflation, premium rates are affected by different factors, including tariffs that can impact construction costs. The Insurance Information Institute found that the average replacement cost increased by a cumulative 55% from 2020 to 2023, largely due to pandemic-driven supply chain disruptions.
According to records from the Office of Insurance Regulation, the median base rate price in Orange County is around $2,600, with insurance prices ranging from $853 to over $6,014. Friedlander advised homeowners to shop around for insurance, as the market has become more competitive. He noted that insurance agents have reported rate reductions of up to 50% for their customers compared to the previous year.
The OIR spokeswoman indicated that it will take time for the full benefits of the reforms to be felt by consumers. As the market continues to evolve, homeowners are encouraged to annually review their insurance policies and take advantage of programs like the state’s wind mitigation and home hardening initiatives to potentially lower their premiums.
