Gov. Ron DeSantis announced on Jan. 12 that Florida homeowners insured through Citizens Property Insurance Corp. will see premium reductions beginning in the spring of 2026 at policy renewal. State officials said the rate relief reflects continued stabilization in Florida’s insurance market following insurance and tort reforms enacted in recent years.
According to the state, the approved rate changes result in a statewide average premium decrease of 8.7% for Citizens policyholders. More than 330,000 policyholders across all 67 counties will receive a reduction, with over 150,000 experiencing decreases of 10% or more.
Citizens Policyholders See Broad-Based Reductions
Under the approved rates, the majority of Citizens policyholders statewide will receive lower premiums. State officials said South Florida, which previously experienced some of the highest litigation-related insurance costs, will see the largest average decreases.
In Broward County, approximately 27,000 homes are expected to see an average reduction of 14.1%. Miami-Dade County includes about 42,000 homes with an average reduction of 14.0%. Palm Beach County includes roughly 26,000 homes with an average reduction of 11.9%. In Monroe County, more than 1,000 homeowners will receive an average reduction of 11.3%, while more than 8,000 wind-only policies will experience either a reduction or no increase.
Litigation Trends and Market Conditions Cited
State officials attributed the premium reductions to several factors, including a decline in insurance litigation following the elimination of one-way attorney fees and changes to assignment-of-benefits practices. Officials also cited actual losses trending below prior projections, declining reinsurance costs, and reduced Citizens’ exposure as policyholders return to the private market.
Underwriting conditions across personal insurance lines have improved, according to the state. As of January 2025, Citizens had 395,144 policies in force, a 50% decline from the prior year and the lowest total in 14 years. Officials said this represents the largest transition of policies back to the private market in a decade.
Broader Insurance Market Activity
The state reported that reforms have influenced activity beyond Citizens. Since the reforms took effect, 17 new insurance companies have entered the Florida market, increasing competition. Dozens of homeowners and auto insurers have filed for rate decreases.
Workers’ compensation rates declined by 6.9% in 2025, marking the ninth consecutive year of reductions for employers, according to the state.
Examples of homeowner rate reductions cited by the state include an 8.2% decrease for Florida Peninsula customers, an 8% decrease for Security First customers, and a 5.1% decrease for Universal Property & Casualty customers.
Auto and Surplus Lines Rate Changes
Auto insurers operating in Florida continue to file for premium decreases affecting hundreds of thousands of drivers. Reported filings include an average decrease of 7% for USAA, 8.7% for Florida Farm Bureau, and 8% for Progressive. State Farm reported an average decrease of 10.1%, which, combined with recent filings, brings its cumulative reduction to 20%. AAA reported three reductions over the year totaling 15%, while Allstate reported an average decrease of 4% for approximately 13,100 drivers.
Surplus lines customers are also seeing lower premiums, according to reports from the Florida Surplus Lines Association. The association reported cost reductions of 10% for commercial business and 47% for commercial windstorm and hail coverage.
Economic Impact Cited by Rideshare Company
During the announcement, the governor referenced a statement from Uber regarding the economic effects of Florida’s legal reforms. Uber reported that since March 2025, Florida riders have saved tens of millions of dollars due to lower insurance-related costs. The company stated that year-over-year fare changes in Florida have been up to six percentage points lower than in other states, noting that riders are seeing lower fares while drivers are completing more trips.
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