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After several years of sustained increases in property insurance costs in South Florida, homeowners will receive relief in 2025.
The governor, Ron DeSantis, announced that the rates of Citizens Property Insurance, the state insurer, will decrease for a large portion of its customers in the region.
73% of the policyholders insured by Citizens in Miami-Dade County will experience an average reduction of 6.3% in their rates.
In Broward, 50% of policyholders will see an average decrease of 4.5%.
At the state level, only 20% of those insured by Citizens will receive this relief, which shows that South Florida will be the most benefited.
This is because Miami-Dade accounts for about 173,000 policies, becoming the epicenter of these adjustments.
Factors Behind the Reduction of Rates
Governor DeSantis attributed this drop in rates to increased competition within Florida's insurance market.
In the last two years, 11 new companies have entered the sector, which has helped stabilize it after a critical period in which multiple insurers left the state due to the high number of claims and lawsuits.
The recent legislative reforms have played a key role in this improvement.
Among the measures adopted, the elimination of fraud related to ceilings and restrictions to curb excessive litigation stand out.
These regulations have helped reduce the cost of policies and attract new insurance providers to the state.
Reactions of the lawmakers
For state lawmakers, the fee reduction represents the fulfillment of promises made in recent years.
The President of the Florida House of Representatives, Danny Pérez, highlighted the positive impact of the reforms.
"We are seeing that the reforms are starting to work. More companies are entering the market, and several insurers have notified the Office of Insurance Regulation (OIR) that they will reduce premiums," Pérez stated.
The aim of these reforms is to build confidence in the market, attract new insurers, and protect homeowners from disproportionate increases in their policies.
Reduction in car insurance
The stabilization of the insurance market in Florida is not limited to property policies.
DeSantis also announced that three of the country's largest car insurance companies -Geico, State Farm and Allstate- have requested to lower their rates statewide.
The companies have submitted requests to reduce premiums by between 6% and 10%, which will benefit thousands of drivers in Florida.
With these changes, the state aims to consolidate a more stable and accessible insurance market for homeowners and drivers, following years of rising policy costs.
Frequently Asked Questions about Insurance Rate Reductions in Florida
Why are property insurance rates being reduced in Florida in 2025?
Property insurance rates in Florida will decrease in 2025 due to increased competition in the insurance market. In the last two years, 11 new companies have entered the sector, which has helped stabilize the market after a critical period with many insurers leaving the state.
What impact will these decreases in insurance rates have in South Florida?
The south of Florida will be the most benefited by the reduction of insurance rates. In Miami-Dade County, 73% of policyholders with Citizens will experience an average reduction of 6.3% in their rates, while in Broward, 50% of policyholders will see an average decrease of 4.5%.
What measures have influenced the reduction of insurance rates in Florida?
Recent legislative reforms have been key to reducing rates in Florida. Frauds related to roofing have been eliminated and restrictions have been imposed to curb excessive litigation, which has helped lower policy costs and attract new insurers to the state.
What other areas of insurance are undergoing changes in Florida?
Additionally, auto insurance rates are also experiencing reductions. Three of the country's largest auto insurers have requested to decrease their rates by between 6% and 10% statewide.
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