Florida Regulators Cut Citizens Insurance Rate Hike to 8.6%

Florida's Office of Insurance Regulation has approved new rates for Citizens Property Insurance Corp., reducing the proposed rate hike from 14% to a statewide average increase of 8.6% for personal residential policies. Governor Ron DeSantis announced that many policyholders in South Florida, particularly in Miami-Dade and Broward counties, will experience rate reductions, with 73% of Miami-Dade customers seeing lower premiums. The changes, which take effect on June 1, reflect ongoing efforts to shift policies from Citizens to the private market, as the state aims to stabilize the insurance landscape. Citizens, created as an insurer of last resort, has become Florida's largest insurer due to challenges in the private market, currently holding 941,158 policies. The state's recent litigation reforms have contributed to bringing in new insurers and lowering Citizens' policy numbers. However, the average premium increase for primary residences will be 8%, while non-primary residences may see hikes as high as 17%.