Florida Peninsula Insurance Proposes Significant Homeowners Premium Reductions

Florida Peninsula Insurance has filed a request with the Florida Office of Insurance Regulation to reduce homeowners' premiums by an average of 8.4% and condominium premiums by 12% for over 170,000 policyholders in the state. This proposed rate cut represents the insurer's largest reduction to date and could take effect later in 2025 or early 2026. The premium decrease is attributed to recent legislative reforms aimed at reducing frivolous lawsuits and inflated claims, which have improved the insurance market environment for private carriers. Florida continues to face some of the highest home insurance premiums nationally, with average costs significantly above the national average. The lack of affordable private insurance has historically led many residents to rely on Citizens Property Insurance Corp., the state-run insurer of last resort, whose policy count has decreased as more private insurers re-enter the market. Experts view Florida Peninsula's rate cut proposal as a sign of market stabilization, influenced by the closing of older, litigated cases. However, risks remain from potential severe hurricane activity, with the 2025 North Atlantic hurricane season forecasted to be above average, which could disrupt insurer gains. Condominium owners, facing disproportionately high insurance and other costs, are positioned to benefit from the proposed premium reductions, potentially improving the market appeal of condo ownership. Florida lawmakers have implemented multiple reforms aimed at stabilizing the insurance industry, contributing to the emerging premium decreases and improved market conditions.