Florida Homeowners to See Insurance Rate Drops in 2025
Florida residents are poised to see decreases in their homeowners insurance rates, a trend attributed to recent legislative reforms and a stabilizing insurance market. According to Governor Ron DeSantis, Citizens Property Insurance Corp. will reduce rates by an average of 5.6% statewide in 2025.
DeSantis highlighted that Florida experienced the lowest average increase in homeowners insurance rates nationwide over the past year. This reduction is a notable shift from the company’s previous request for a 13.5% average rate increase, a request which officials argued would have still fallen short of actuarially sound rates and would have potentially made its policies less competitive in the open market. In August, Citizens estimated that rates would need to increase by nearly 93% to comply with state-mandated requirements to remain noncompetitive with private insurers.
” + “Homeowners insurance in the state saw only a 1% increase in 2024 and are projected to rise by only 0.5% in 2025, DeSantis said, citing a report from AM Best. He added that a significant portion of homeowners in several counties would see rate reductions: 75% in Miami-Dade County, half in Broward County, and 19% in Palm Beach County.
This positive shift is reflected in Citizens’ recent announcement that it has reduced its policy count below 1 million. As of November 29, the state-backed insurer reported 987,650 policies, a reduction largely due to successful depopulation efforts.
The American Property Casualty Insurance Association (APCIA) credits recent state legislative reforms for the rate reductions. Governor DeSantis pointed to measures addressing assignment of benefits, attorney fees, and the establishment of a home-hardening program, in addition to a $2 billion reinsurance initiative for policyholders. The APCIA noted a stabilization in the Florida insurance market, with 11 new insurers entering the state and existing private insurers filing for rate decreases or only minor adjustments.
Logan McFaddin, vice president of state government relations for the APCIA, emphasized the contrast between the current market conditions and those of two years ago. “Market conditions in 2024 and 2025 contrast sharply with those of two years ago,” McFaddin said, when average rate increases were in the double digits.
Beyond homeowners insurance, auto insurance premiums are also becoming more affordable. The governor noted that several major carriers have filed for rate reductions, including an 8.1% decrease by Progressive Insurance Corp., a 6% reduction by State Farm, and a 10.5% cut by Geico.
Further evidence of market improvement includes the impact of legislative reforms on auto glass litigation. The number of related lawsuits dropped from 24,720 in the second quarter of 2023 to 2,613 during the same period in 2024.
