Florida Homeowners Insurance Rates Decrease: What You Need to Know

In December, the Board of Governors at Citizens Property Insurance approved rate adjustments for 2026 that propose a 2.6% average decrease in homeowners' insurance rates across Florida. This marks the first rate decrease since 2015, signaling a pivotal shift in the insurance landscape. However, the Florida Office of Insurance Regulation must approve the changes, and some regions, like Brevard County, might still see premium increases of up to 6.5%.

The new rate recommendations could potentially lower premiums for many policyholders by an average of 11.5%, equating to approximately $359 per policy. These changes, pending regulatory compliance approval, depend on a public hearing conducted by the Office of Insurance Regulation, with implementation slated for June 1, 2026. These proposed adjustments stem from recent legislative reforms in Florida aimed at reducing litigation and enhancing regulatory oversight, attracting 17 new insurance carriers to the market.

Citizens Property Insurance, originally established in 2002 to assist those unable to find private market coverage, is a not-for-profit insurer operating under legislative mandates. The insurer, which peaked at 1.42 million policies as of October 2023, anticipates a decrease to about 385,000 by the end of 2025, primarily through private insurer transfers under the Depopulation Program. Additionally, the 2025 Atlantic hurricane season ended with no hurricanes making landfall in Florida, a first since 2015, which could influence future risk management strategies.

The evolving insurance landscape in Florida reflects the dynamic interplay of industry conditions and regulatory factors, creating both challenges and opportunities for insurers. These developments illustrate a significant transformation in risk management strategies and regulatory compliance requirements for payers and providers operating in the state.