Florida’s Citizens Property Insurance will lower rates by 5.6% statewide in 2025, Gov. Ron DeSantis announced. He claimed the state experienced the lowest average increase in homeowners’ insurance rates nationwide last year.
This reduction contradicts the insurer’s initial request for a 13.5% increase across personal and commercial lines. The company stated that even with this adjustment, rates would not have been actuarially sound or competitive with private insurers.
In August, Citizens estimated it would need a 92.8% rate hike to comply with state laws requiring noncompetitive pricing.
Statewide rates increased 1% in 2024 and are projected to rise 0.5% in 2025, DeSantis said. In Miami-Dade County, 75% of homeowners will see lower rates, compared to 50% in Broward County and 19% in Palm Beach County.
The American Property Casualty Insurance Association credited legislative reforms for the declining rates. The governor noted that new policies addressed assignment of benefits, attorney fees, home fortification, and a $2 bn reinsurance program.
Market conditions have improved, with 11 new insurers entering Florida. Many private insurers have filed for rate reductions, no rate changes, or minor increases. Logan McFaddin, vice president of state government relations at the APCIA, said this marks a sharp contrast from two years ago when rates were climbing by double digits.
Auto insurance rates are also dropping. Progressive reduced rates by 8.1%, State Farm by 6%, and Geico by 10.5%. Legislative changes have also cut auto glass-related lawsuits, which fell from 24,720 in Q2 2023 to 2,613 in Q2 2024.
The Florida Office of Insurance Regulation and Citizens Property Insurance Corp. did not provide comments.
Florida’s five largest homeowners’ insurance providers by direct premiums written were Citizens Property Insurance Corp. (18.57% market share), Universal Insurance Holdings Group (8.47%), State Farm Group (6.88%), Florida Peninsula Group (4.88%), and Tower Hill Group (4.35%).
Citizens Property Insurance Corporation (Citizens) was created in 2002 from the merger of two other entities to provide both windstorm coverage and general property insurance for home-owners who could not obtain insurance elsewhere.
It was established by the Florida Legislature in Chapter 627.351 Florida Statutes as a not-for-profit insurer of last resort, headquartered in Tallahassee, Florida, and quickly became the largest insurer in the state. The company has no connection to Louisiana Citizens Property Insurance Corporation, the equivalent entity in Louisiana, or several similarly named “for-profit” subsidiaries in the Hanover Insurance Group.
