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In a rare piece of good news for Florida homeowners, one of the state’s largest property insurers is making moves to cut its premiums—offering a much-needed break after years of rising costs and shrinking coverage.
Florida Peninsula Insurance, currently the ninth-largest property insurer in the state, has submitted a proposal to the Florida Office of Insurance Regulation (OIR) requesting significant rate reductions:
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8.4% decrease in homeowners’ insurance premiums
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12% decrease in condo owners’ premiums
If approved, this could translate into meaningful savings for more than 170,000 policyholders across Florida.
⚖️ A Market on the Mend
These cuts come amid growing signs that Florida’s property insurance market is finally stabilizing after a years-long crisis fueled by:
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Increasing exposure to hurricanes and other disasters
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Skyrocketing home values
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Excessive litigation
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Rampant insurance fraud
Between 2020 and 2023, several insurers went insolvent. Others limited coverage in high-risk areas, leaving many Floridians with fewer options and much higher premiums.
But the tide has turned.
🛠️ Legislative Reforms Are Paying Off
In the past two years, lawmakers in Tallahassee enacted major reforms—including tort reform—designed to rein in lawsuit abuse and fraudulent claims. According to Mark Friedlander of the Insurance Information Institute, those efforts are now delivering real results:
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In 2024, Florida insurers collected more in premiums than they paid in claims—the first time since 2015.
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14 new insurance carriers have entered the Florida market.
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Premium growth is the lowest in the U.S., at just 1.75% for 2025.
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Even Citizens Property Insurance Corp., the state-backed insurer of last resort, has cut its risk exposure in half.
Florida Peninsula Insurance credits these reforms as the key driver behind its proposed rate cuts.
“The legislative reforms have contributed to a measurable drop in frivolous lawsuits and inflated claims, providing us the ability to pass on the savings… to our policyholders,” said Florida Peninsula President Clint Strauch.
💸 Relief Can’t Come Soon Enough
While the state is seeing signs of recovery, Florida homeowners still face some of the highest premiums in the country. According to Bankrate, the average annual cost for $300,000 in dwelling coverage in Florida is $5,728, compared to the national average of $2,397.
If Florida Peninsula’s rate reduction is approved, customers could see relief as early as late 2025.
This move is a potential bellwether—one that may signal broader premium relief if the market continues to stabilize and competition grows.
