Three property insurance companies in Florida have announced plans to reduce their rates to provide relief to homeowners in the state.
Starting in July, Florida Peninsula Insurance will reduce property insurance rates for new policies and renewals by 2%, on average. The firm currently has over 122,000 residential policies in the state, as first reported by News4Jax.
Slide Insurance Company is planning a 0.5% decrease in the average rate it charges owners of single-family homes. Florida Family Insurance Company also plans a 0.5% reduction in premiums for houses, condominium units, and rental properties. Both companies are currently seeking approval for a rate reduction from the Office of Insurance Regulation.
Insurance Rates in Florida
The potential reduction in insurance rates for some companies in Florida may provide much-needed relief for homeowners in the state. In the last three years, homeowners insurance premiums in Florida increased by 102%, per Fox News, citing data from the Insurance Information Institute.
The average cost of insurance in Florida in 2023 was also $10,996, and it is projected to increase a further 7% this year. That would put homeowners insurance rates at $11,759 at the end of 2024, according to Insurify. In comparison, the national average insurance rate last year was $2,377.
Several factors have led to Florida's soaring insurance costs. The state suffers from frequent catastrophic extreme weather events, which led some major insurers to withdraw from Florida. Other factors also include excessive litigation and widespread property fraud.
In hopes of resolving the rising cost of homeowners insurance in the state, two political leaders in South Florida have proposed a bill that could cut insurance premiums by 25%. The bill would also lower the amount of reinsurance that insurers have to buy and allow the Treasury Department to issue 10-year notes to cover damages beyond what would be caused by a once-in-a-50-year storm. In total, the bill can save Florida homeowners about $838 million in premiums over five years.
That being said, it is unclear if the bill will pass Florida's Legislature and be signed into law. It has not yet moved in Congress as of writing.
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