When Will Florida Homeowners See Lower Insurance Premiums?

Homeowners in Florida might start noticing a decrease in their insurance premiums starting March 1, according to expert predictions. However, those who need to renew their policies before this date will not experience the reduction until the following year. "The exact date is not set yet, but we believe it will take effect on March 1, when homeowners will start receiving these reductions," stated Dulce Suárez-Resnick, Vice President of Acentria Insurance, in a statement to Telemundo 51.

Despite the announcement from Governor Ron DeSantis, these reductions are relatively modest compared to the increases of 20% to 30% that have impacted homeowners in recent years.

Expected Reduction in Insurance Premiums

In Miami-Dade, around 73% of Citizens policies will see a reduction of 6.3%, while in Broward, 50% of policies will decrease by 4.5%. However, these discounts may be offset by the Inflation Guard, an automatic adjustment that increases policy coverage annually. "Policies will always go up in coverage slightly, typically around 4%," experts explain. Therefore, a reduction of 6.5% might be substantially diminished.

In Broward, for instance, "the reduction is 4.5%, so some homeowners might not notice a real savings, though they also won't face an increase," noted Suárez-Resnick.

Additional Factors Influencing Insurance Prices

Another element affecting rates is the entry of new insurance companies into the state. While their presence could stabilize the market long-term, they might lead to short-term cost increases. These insurers begin with an agreement to take on Citizens policies during their first year but can charge up to 20% more.

"They can charge up to 19.9% above the Citizens premium, and customers have to accept it," specialists warn. However, with 11 insurance companies having exited in recent years, 13 new insurers are expected to be approved to offer policies in Florida by the end of March. "This indicates that the market is opening up to diversity and competition, which will eventually drive prices down," concluded Suárez-Resnick.

After several years of steady increases in property insurance costs in South Florida, homeowners will receive some relief in 2025. Governor DeSantis announced that Citizens Property Insurance, the state insurer, will lower rates for a significant portion of its customers in the region. In Miami-Dade, 73% of Citizens policyholders will experience an average rate reduction of 6.3%, and in Broward, 50% will see an average decrease of 4.5%. Statewide, only 20% of Citizens policyholders will receive this relief, highlighting the significant benefit for South Florida. This is because Miami-Dade holds about 173,000 policies, making it the epicenter of these adjustments.

Reasons Behind the Rate Reduction

Governor DeSantis attributes this decrease in rates to increased competition within Florida's insurance market. In the past two years, 11 new companies have entered the sector, stabilizing it after a critical period where multiple insurers left due to high claims and litigation volumes. Recent legislative reforms have played a crucial role in this improvement. Measures adopted include eliminating roofing-related fraud and imposing restrictions to curb excessive litigation. These regulations have helped lower policy costs and attract new insurers to the state.

Legislators' Reactions

For state legislators, the rate reduction represents the fulfillment of promises made in recent years. The Speaker of the Florida House of Representatives, Danny Pérez, highlighted the positive impact of the reforms. "We are seeing the reforms starting to work. More companies are entering the market, and several insurers have notified the Office of Insurance Regulation (OIR) that they will reduce premiums," expressed Pérez. The goal of these reforms is to build confidence in the market, attract new insurers, and protect homeowners from disproportionate increases in their policies.

Reduction in Auto Insurance

The stabilization of Florida's insurance market is not limited to property policies. DeSantis also announced that three of the nation's leading auto insurers—Geico, State Farm, and Allstate—have requested rate reductions statewide. These companies have filed requests to decrease premiums between 6% and 10%, benefiting thousands of drivers in Florida. With these changes, the state aims to establish a more stable and accessible insurance market for homeowners and drivers alike, following years of increasing policy costs.