Homeowners in Florida are poised to see a decrease in their property insurance premiums beginning in March 2025, according to recent reports. However, the reductions are expected to be relatively small compared to the significant increases many have experienced in recent years.
Estimates suggest that the reductions will begin on March 1. Policies renewed before this date, however, won’t see the adjustment until the following year. Dulce Suárez-Resnick, vice president of Agente Acentria Insurance, confirmed this, stating, “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.” She made these statements to Telemundo 51.
Modest Reductions in Miami-Dade and Broward
The announced reductions are, in many cases, relatively small, especially compared to the 20% to 30% increases faced in recent years. In Miami-Dade County, approximately 73% of Citizens policies will see an average decrease of 6.3%. In Broward County, about 50% of policies will see a 4.5% reduction.
Experts warn that the “Inflation Guard,” or automatic annual adjustments to coverage, may further reduce actual savings. These adjustments increase the coverage amount, usually around 4% annually. Thus, a 6.5% reduction might not provide a significant cost saving since the coverage will increase slightly.
In Broward County, the 4.5% reduction could result in many homeowners not experiencing any real savings, though at least they won’t be facing further premium increases, according to Suárez-Resnick.
Market Factors Influencing Rates
The arrival of new insurance companies in the state also plays a role in the market’s dynamics. While the additional competition should stabilize the market, it could lead to higher prices in the short term. New insurers in Florida are entering into agreements to take on Citizens policies in their first year, but they might charge up to 20% more than existing rates.
Specialists caution that, “They can charge up to 19.9% on the Citizens premium, and customers must accept it.” Despite this, 13 new insurers are expected to be approved to offer policies in Florida by the end of March, after the departure of 11 companies in recent years.
Suárez-Resnick believes this indicates “that the market is opening up to diversity and competition, which will eventually lead to a reduction in prices.”
Legislative Reforms and Market Stabilization
Governor Ron DeSantis has cited increased competition within Florida’s insurance market as the primary reason for the rate declines. The entry of 11 new companies over the last two years has provided some stabilization after numerous insurers left the state due to high claims and litigation.
Legislative reforms play a critical part in this improvement. These include actions to eliminate fraud related to roof claims and restrictions to curb excessive litigation.
Positive Reactions from Legislators
State lawmakers see the rate decreases as a fulfillment of prior promises. Danny Pérez, Speaker of the Florida House of Representatives, highlighted the positive impact of the reforms, stating, “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.”
The overall goal of these reforms is to attract new insurers, build market confidence, and protect homeowners from disproportionate premium increases.
Auto Insurance Reductions
The stabilization of the insurance market extends beyond property policies. Governor DeSantis has stated that three major auto insurers, GEICO, State Farm, and Allstate, have requested to reduce their rates statewide. They have applied to reduce premiums by 6% to 10%, which would benefit a huge number of drivers in Florida.
With these adjustments, Florida intends to provide homeowners and drivers a more stable and affordable insurance market, following a period of rising costs.
