Rate Decreases May Be on the Way for Some Florida Condo and Home Owners

Florida Peninsula Insurance Company has asked the state’s insurance department to approve rate decreases for its condo and home insurance policies. If the Florida Office of Insurance Regulation (OIR) approves the request, the average rate decrease for home insurance premiums would be 8.4%, Newsweek recently reported. For condo owners, the average decrease would be 12%.

Florida currently has the most expensive home insurance in the country, with an annual average premium of $14,410, according to Insurify data. Insurify data scientists predict that the average could increase 9% by the end of 2025.

Florida’s moves to rein in home insurance costs

In 2022 and 2023, Florida lawmakers passed regulations aimed at claim deadlines, payouts, estimates, one-way attorney fees, and bad-faith litigation.

Since then, insurers have returned to the state, with more entering the market than the state lost since 2020.

“The legislative reforms have contributed to a measurable drop in frivolous lawsuits and inflated claims, providing us the ability to pass on the savings from the law’s changes to our policyholders,” said Clint Strauch, president of Florida Peninsula Insurance.“This rate reduction shows that the legislative reforms have successfully addressed the root cause of increasing insurance premiums in Florida.”

Early this year, a few legislators proposed reforms that would roll back and refine some of the stipulations made in 2022 and 2023. But both bills died in the Florida Senate in June.

Floridians still struggle with high premiums

Despite market improvements and some Florida homeowners finding relief, many still struggle with high premiums. Florida’s annual home insurance average will increase to $15,460 by the end of the year, according to Insurify data scientists. And six of the 10 most expensive cities for homeowners insurance are in Florida, according to Insurify data.

Ultimately, the state’s high risk for hurricane damage affects premiums.

Last year, hurricanes Helene and Milton caused more than $100 billion in damage, and Florida homeowners filed nearly 458,000 claims. Florida also has the highest risk of being hit with a hurricane this year, at 35% (21% above the average).

What’s next: Reducing rates

If the Florida OIR approves Florida Peninsula Insurance Company’s request, 170,000 policyholders could see a rate decrease by the end of the year and early into 2026.

Florida Peninsula Insurance said this rate decrease is the largest rate reduction in the company’s 20-year history, NBC affiliate station WFLA reported.

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