The Florida Insurance Commissioner, Mike Yaworsky, approved an average reduction of 12.8% in rental insurance rates from American Modern Home Insurance Company, a move that will benefit approximately 121,898 policies statewide and will take effect on October 11.
The reduction is not uniform for all insured individuals of that company: in more than 30 counties in Florida, the average decrease will range from 13.1% to 13.9%, above the state average.
The counties with the highest concentration of American Modern policies are Orange, with an average discount of 13.4%, and Broward, at 13.8%, which happen to be two of the areas where a significant portion of the Cuban community in South Florida resides.
"The Office of Insurance Regulation is approving significant rate reductions across the board, including reductions in insurance for our Florida tenants," Yaworsky stated. "We are working hard to lower the rates on all policies and will continue reaching out to companies to ask them to do more. Stay tuned!"
Yaworsky anticipated that the process is not over: "I expect to see more aggressive cuts in the near future and leading up to 2027. The OIR is receiving a flood of reduction requests ranging from 0.3% to 19.7%. This is good news for Floridians."
The policy, known as HO-4 or tenant insurance, covers the personal belongings of the renter against risks such as fires, theft, or vandalism, in addition to providing liability protection if someone suffers an accident within the rented space. It does not cover, in any case, the structure of the building, which remains the responsibility of the owner.
For a tenant with a standard policy in Florida —whose average cost ranges between $150 and $289 annually— the 12.8% discount translates to savings of between $19 and $37 per year.
In counties like Broward, where the reduction reaches 13.8%, the benefit may be somewhat higher depending on the coverage purchased.
It is important to clarify that the measure does not apply to all tenants in Florida, but exclusively to those who have an active HO-4 policy with American Modern Home Insurance Company.
To determine if the discount applies, simply check the "declaration page" or the summary of the policy, or consult directly with the insurance agent. If the insurer is different, this reduction will not take effect.
The approval comes at a time of sustained improvement in the insurance market in Florida, driven by the 2022 legislative reform that drastically reduced abusive litigation.
Rentals in Miami-Dade have also decreased by 2.29% in the past year, with a median rent of $2,900 per month, while in Hialeah it stands at $2,412 and in Kendall at $2,400.
Days earlier, the same regulatory office had approved reductions in property insurance for four insurers, in a trend that has seen requests for rate cuts from 48 different companies since January 2024.
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