Florida’s Citizens Insurance Proposes 2.6% Statewide Rate Cut for 2026 Personal Lines
Citizens Property Insurance Corporation, Florida's state-owned insurer of last resort, is proposing a 2.6% statewide rate reduction for personal lines insurance in 2026. This recommendation stems from successful regulatory reforms implemented in 2022 and 2023 that have encouraged a significant transfer of policies to private insurers, resulting in a sharp decline in Citizens’ policy count from approximately 1.4 million in September 2023 to around 439,079 by November. While the overall state sees rate decreases, the magnitude varies by region, with South Florida homeowners expecting reductions exceeding 11% on average. Notably, policyholders in Miami-Dade, Broward, and Palm Beach counties could enjoy premium savings ranging from 11.7% to 13%, translating to average annual savings of about $421 to $433 per policyholder. Conversely, certain Central Florida counties including Orange, Osceola, Lake, and Brevard are forecasted to experience moderate rate increases, ranging from 1.8% up to 6.5%. Other counties like Polk and Seminole are projected to see slight rate decreases. The proposed rate adjustments await approval from the Florida Office of Insurance Regulation following a scheduled vote by Citizens' Board of Governors. The personal lines covered encompass multi-peril and dwelling/fire policies on owner-occupied single-family residences, condominiums, mobile homes, and wind-only hurricane coverage. The rate shifts reflect ongoing market and regulatory dynamics as Florida continues to encourage private insurer involvement to reduce the reliance on Citizens. These developments underscore the insurer’s evolving role in the Florida property insurance market amid broader efforts to stabilize rates and enhance insurer participation. The varying geographic impact demonstrates localized risk and market conditions influencing rate setting. This adjustment cycle provides critical insights for insurance professionals monitoring regulatory compliance, market trends, and regional risk profiles in Florida’s property insurance sector.