DeSantis says Florida Citizens insurance rates to fall as much as 10%

Most Florida homeowners with Citizens Property Insurance Corp. policies are set to see a nearly 10% reduction in their annual rates when they go to renew in the spring.

Gov. Ron DeSantis and the Florida Office of Insurance Regulation say in a pair of statements that statewide the average cost for a policy will be reduced 8.7%.

According to the statements, more than 330,000 Citizens policyholders across the state’s 67 counties will see rate decreases, and more than 150,000 policyholders will receive reductions of 10% or more.

Citizens, the state-run insurer, had 437,095 policies in force as of November. That is down 55.76% from the 988,051 in force a year earlier, according to its website. In December 2023, Citizens had 1.22 million policies in force, a 61.82% increase from two years earlier.

(The statements says there are 395,144 policies in force as of January but Citizens’ website does not yet show policy numbers for December or January.)

DeSantis and OIR credit the rate reduction to legislative reforms that have led to a “sharp decline in litigation following the elimination of one-way attorney fees and abusive assignment-of-benefits practices.”

“Actual losses have trended below prior projections, reinsurance costs have declined and Citizens’ overall exposure has decreased as policyholders return to the private market.”

Prior to the reforms passed in 2023, the state’s insurance marketplace was in disarray and there were fears it was on the brink of collapse. Much of the blame fell on the cost of attorney fees which, the argument went, encouraged lawsuits.

One figure at the time reported 79% of all homeowner lawsuits over claims filed nationwide were filed in Florida while making up only 9% of actual insurance claims.

The highly litigious environment was, in part, responsible for private carriers fleeing Florida, which put a heavy burden on Citizens.

While the reduction in rates will bring relief to many homeowners, the cost for property insurance in Florida remains among the highest in the country.

According to data from Bankrate.com, the annual homeowner insurance premium in Florida was on average $5,838 per year. That is $3,414 higher than the national average.