Florida’s Citizens Property Insurance Proposes 2.6% Rate Cuts for 2026

Citizens Property Insurance Corporation, a state-owned insurer in Florida, has proposed an average statewide rate decrease of 2.6% for personal lines policies effective June 1, 2026, coinciding with the start of hurricane season. This adjustment would benefit approximately 463,096 policyholders with an average saving of $359 compared to 2025. Significant rate reductions are projected in South Florida, particularly in Broward, Palm Beach, and Miami-Dade counties, where decreases exceed 11%, primarily attributed to recent legislative reforms and operational efficiencies. The 2022-2023 reforms eliminated plaintiffs attorneys' rights to collect legal fees in litigation over claims payments above insurers' initial offers, which has notably reduced litigation costs. According to Citizens President and CEO Tim Cerio, these savings reduced premium requirements by $500 million in 2025. Additional cost-saving measures include diverting litigation to administrative hearings and transferring policies to private insurers through a robust depopulation program, which has lowered Citizens' policy count from a peak of about 1.4 million in 2023 to an estimated 385,000 by the end of 2025. Despite overall decreases in South Florida, rate increases are projected for several Central Florida counties, including Orange, Osceola, Lake, and Brevard. These adjustments reflect efforts to align rates with actuarial soundness to cover expected losses. The rate decrease for Citizens marks the first in a decade and targets personal lines policies covering multi-peril and dwelling/fire insurance for owner-occupied homes, condos, mobile homes, and wind-only hurricane coverage. Industry analysts observe that the slower growth of insurance costs in Florida, including with private-market insurers, may signal more widespread premium reductions in 2026. The Insurance Information Institute anticipates that private insurers could follow Citizens' example with significant rate decrease filings next year, reflecting the broader impact of reforms and market corrections. The proposed rate changes are subject to approval by the Florida Office of Insurance Regulation following public hearings. Citizens' strategy demonstrates the influence of legislative and regulatory actions on insurance pricing and market dynamics, affecting both public and private sector insurers within Florida's challenging insurance market environment.