Florida's Governor, Ron DeSantis, announced on Monday what he described as a "historic reduction" in home insurance premiums across the state. This development marks a significant shift after years of relentless hikes and turmoil within the insurance sector.
The announcement, delivered during a press conference at Broward College in Davie, provided encouraging news for homeowners, notably in South Florida, where insuring a property had become a heavy financial burden.
Starting in the spring of 2026, these new rates will gradually be implemented during policy renewal cycles, positively impacting hundreds of thousands of families.
On average, policyholders with Citizens Property Insurance, the state's insurer of last resort, will experience an 8.7% decrease statewide.
Significant Reductions for Major Counties
However, the reduction will be even more pronounced in southern counties, which have typically borne the brunt of rising premiums:
- Miami-Dade: Approximately 42,000 households will see a 13.9% average reduction.
- Broward: Around 27,000 homeowners will benefit from a 14.1% decrease.
- Palm Beach: About 26,000 insured individuals will witness an 11.9% premium cut.
- Monroe: Those with full coverage will enjoy an 11.3% relief, and individuals with wind-only policies will not face increases.
Legal Reforms and Litigation Reduction: The Catalysts for Change
DeSantis highlighted that these unprecedented reductions stem from a combination of factors: legal reforms, a decrease in frivolous lawsuits, and the return of competitive forces to the market.
One of the key aspects of the announcement was the impact of state-led reforms between 2022 and 2023 that significantly altered the legal landscape for the insurance industry.
DeSantis pointed out that while Florida accounted for only 8% of national homeowners' insurance claims, it was responsible for nearly 80% of litigation costs.
"That dynamic is already changing," he stated, explaining that legislative adjustments have reduced incentives for lawyers to file abusive lawsuits, creating a more stable environment for insurance companies.
This newfound stability has allowed operational costs to decrease, with those savings being passed directly to consumers.
State Insurance Commissioner Michael Yaworsky also emphasized that his office revised Citizens' original proposal to ensure tangible savings reached policyholders.
More than 150,000 people will see reductions exceeding 10% in their rates, he added.
From Monopoly to a Competitive Market
Another cornerstone of the change has been the significant drop in policies issued by Citizens, which decreased from managing 1.3 million policies to fewer than 400,000—the lowest level in 14 years.
This decline is attributed to the return of 17 private insurance companies that have resumed operations in Florida, taking on clients and expanding offerings.
According to DeSantis, the entry of these new players has driven prices down, breaking the de facto monopoly that Citizens had established following the exodus of private companies in recent years.
Positive Impact Beyond Home Insurance
During his speech, the governor also noted that the reforms have had beneficial effects in other insurance markets, including auto insurance and so-called "surplus lines."
"Florida is heading in the opposite direction of the rest of the country, where premiums continue to rise," DeSantis asserted.
He cited the example of ride-sharing companies like Uber, which have seen significant reductions in insurance costs due to regulatory adjustments.
"Their rates are now six percentage points lower than in the other 49 states since March 2025," he noted.
Reinsurance Stability: A Key Factor
Officials also mentioned that reinsurance costs, which are the coverage insurers purchase to protect against catastrophic losses, have stabilized and, in some cases, started to decline.
This has allowed companies to take on more risk without needing to increase premiums for consumers.
DeSantis and his team acknowledged that external factors such as inflation, rising replacement costs, and major hurricanes have played a crucial role in market dynamics.
However, they assured that Florida has managed to contain the crisis through a proactive and structural approach.
A Fulfilled Promise and Relief for Thousands of Families
With this announcement, DeSantis aims to position his administration as a model for reviving the insurance market, in contrast to other states where costs continue to climb.
For many families in Florida, particularly in vulnerable southern regions, this reduction offers financial relief after years of uncertainty and constant premium increases.
"The reforms are working," concluded the governor, reiterating that his administration will continue striving to ensure an affordable, competitive, and transparent insurance market statewide.
Frequently Asked Questions About Florida's Insurance Premium Reductions
How will the new insurance rates be implemented in Florida?
The new insurance rates will be progressively implemented starting in the spring of 2026 during the policy renewal cycles.
What is the average reduction in premiums for Citizens Property Insurance policyholders?
Policyholders with Citizens Property Insurance will see an average statewide reduction of 8.7% in their premiums.
Which counties will experience the most significant premium reductions?
Counties like Miami-Dade, Broward, Palm Beach, and Monroe will experience the most significant reductions in premiums.
How have legal reforms contributed to the reduction of insurance premiums in Florida?
Legal reforms have reduced incentives for lawyers to file excessive lawsuits, creating a more stable environment for insurance companies and lowering operational costs, which are passed on to consumers.