By Ed Dean
Florida Peninsula Insurance (FPI) has around 170,000 policyholders. The company has just announced that premiums may be decreasing for its clients.
This month, FPI submitted paperwork to the Florida Office of Insurance Regulation, seeking approval for a 8.4% rate cut for homeowners’ premiums and a 12% reduction for Florida condo owners.
Peninsula says if insurance regulators approve their request, policyholders could see a “significant premium decrease” in the latter part of 2025 or sometime in the first quarter of 2026. The company says it will be their most significant rate cut to date.
Some insurance analysts are optimistic that this may be the beginning of lower or stabilized costs for Florida consumers.
“This is a good sign that the market conditions have not only stabilized but are improving,” Charles Nyce, with the Risk Management & Insurance Center at Florida State University.
Another positive sign for Florida taxpayers is that the insurer of last resort, Citizens Property Insurance Corp, is seeing clients fall off their books, with more insurance companies doing business in the state.
In 2023, there were approximately 1.4 Floridians who had policies with Citizens, but now that figure has dropped to around 777,592.
Bankrate.com estimates that Florida homeowners pay more than double that national average for insurance. The normal cost for cost for 300,000 in home coverage is around $5,730 in yearly premiums.
Florida State Rep. and insurance analyst Brian Hodgers says things are moving in the right direction for Florida property owners. He credits the lower cost due to the state’s litigation reforms over the last few years. “We’ve seen a drop in frivolous lawsuits and that translates into lower premiums for consumers,” Hodgers said.
But the insurance industry warns that if the state is hit with one of two storms for the remainder of hurricane season, lower costs for consumers may be put on hold.
