Key Takeaways
- — Citizens policyholders get 8.7% average decrease — the first rate cut since 2015
- — South Florida sees biggest savings — Miami-Dade and Broward get 14% cuts
- — State Farm cutting 10.1%, bringing cumulative reduction to 20%
- — Savings begin Spring 2026 at your policy renewal date
- — 330,000+ Citizens policyholders across all 67 counties will see decreases
What's Happening: Insurance Rate Cuts Overview
Governor Ron DeSantis announced what he called a "historic reduction" in Florida homeowners insurance premiums. After years of 20-30% annual increases that made Florida the most expensive state for home insurance, the market is finally stabilizing—and in many cases, rates are actually going down.
The turnaround is largely attributed to legal reforms passed in 2022-2023 that eliminated one-way attorney fees and restricted assignment of benefits (AOB) abuse. These changes dramatically reduced litigation costs for insurers.
The result? Seventeen new insurance companies have entered the Florida market since the reforms, reinsurance costs have eased, and actual losses have trended below projections. For the first time in over a decade, Florida homeowners are seeing relief.
"This is the result of the legal reforms we passed... Florida's insurance market is finally turning the corner."
— Governor Ron DeSantis, January 2026
Important Context
While rates are decreasing, Florida still has the highest home insurance premiums in the nation. The average annual premium is approximately $3,815—roughly 3x the national average. These cuts represent stabilization and relief, not a return to pre-crisis pricing.
Citizens Property Insurance: County-by-County Savings
Florida's state-backed insurer of last resort is cutting rates for the first time since 2015. Insurance Commissioner Michael Yaworsky approved an 8.7% average statewide decrease—even larger than the 2.6% cut Citizens originally proposed.
Over 330,000 policyholders across all 67 Florida counties will see rate decreases, with more than 150,000 policyholders receiving reductions of 10% or greater. South Florida homeowners will see the largest savings.
| County | Rate Decrease | Homes Affected |
|---|---|---|
| Broward | 14.1% | ~27,000 |
| Miami-Dade | 14.0% | ~42,000 |
| Palm Beach | 11.9% | ~26,000 |
| Monroe | 11.3% | 1,000+ |
| Statewide Average | 8.7% | 330,000+ |
Source: Citizens Property Insurance Press Release, December 2025
Citizens Policy Count Plummeting
Citizens has dropped from 1.42 million policies in October 2023 to approximately 395,000 policies in January 2026—the lowest level since 2012. This is a sign that the private insurance market is recovering and taking back policies from the state insurer.
Private Insurers Cutting Rates
It's not just Citizens. Multiple private insurance companies have filed for rate decreases, approved by the Florida Office of Insurance Regulation.
| Insurance Company | Rate Change | Notes |
|---|---|---|
| State Farm | -10.1% | Cumulative -20% with recent filings |
| Florida Peninsula | -8.2% | |
| Security First | -8% | |
| Universal Property | -5.1% | |
| Heritage P&C | -3.3% avg | Up to -9.6% in Seminole County |
Not all insurance companies are cutting rates equally, and some may still be raising rates in certain areas. Contact your specific insurer to find out how your policy will be affected.
Check Your Insurer
Rate changes vary by company, location, and policy type. Call your insurance agent or check the Florida Office of Insurance Regulation website to see if your insurer has filed for rate changes.
When Will You See Savings?
Rate decreases don't happen automatically. New rates apply when your policy renews, not immediately. Here's the timeline:
January 2026: Rate Cuts Approved
Insurance Commissioner approves new rates for Citizens and private insurers
Spring 2026: First Renewals
Policyholders renewing in Spring 2026 are first to see new rates
Throughout 2026: Gradual Rollout
All policyholders see new rates as their policies renew throughout the year
Recommendation
Mark your calendar 60 days before your renewal date. This gives you time to shop around and compare quotes from multiple insurers before your policy renews.
How to Shop for Florida Home Insurance
With rates finally dropping, now is a good time to shop around. Here's a step-by-step approach to finding the best coverage at the best price.
Start 60 Days Before Renewal
Don't wait until the last minute. Give yourself time to compare quotes, ask questions, and make an informed decision. Your current insurer must send renewal notices at least 45 days in advance.
Get 3-5 Quotes
Contact multiple insurers directly or work with an independent agent who represents several companies. Compare quotes from both large national carriers and Florida-based regional insurers. The Florida OIR quote comparison tool can help.
Compare Apples to Apples
Make sure each quote has the same coverage limits, deductibles, and endorsements. A cheaper quote might have less coverage. Pay attention to dwelling coverage, personal property limits, liability amounts, and hurricane deductibles.
Check Company Financial Ratings
An insurance policy is only as good as the company's ability to pay claims. Check ratings from AM Best (look for A- or better) and review complaint ratios on the Florida OIR website.
Ask About All Available Discounts
Insurers don't always volunteer discounts. Ask specifically about: new home, claims-free, security system, retired/senior, multi-policy bundle, roof age, wind mitigation, and payment discounts (paying annually vs. monthly).
Independent Agents vs. Direct
Independent insurance agents represent multiple companies and can shop the market for you at no extra cost—they're paid by the insurer, not you. This can save significant time compared to calling each company individually. However, some insurers like USAA and State Farm only sell direct, so you may need to contact them separately.
Buying or Moving?
If you're purchasing a new home, factor insurance costs into your budget alongside closing costs. If you're considering downsizing, a smaller home typically means lower insurance premiums—plus potential property tax savings through portability.
Understanding Your Florida Home Insurance Policy
Before comparing prices, understand what you're actually buying. Florida policies have unique features due to hurricane risk.
Coverage Types Explained
| Coverage | What It Covers | Typical Amount |
|---|---|---|
| Dwelling (Coverage A) | Structure of your home—walls, roof, built-in appliances | Replacement cost to rebuild |
| Other Structures (B) | Detached garage, fence, shed, pool enclosure | 10% of dwelling coverage |
| Personal Property (C) | Furniture, electronics, clothing, belongings | 50-70% of dwelling |
| Loss of Use (D) | Hotel, meals, temporary housing if displaced | 20% of dwelling |
| Liability (E) | Someone injured on your property, lawsuits | $100K-$500K |
| Medical Payments (F) | Minor injuries to guests, no lawsuit needed | $1K-$5K |
Florida-Specific: Hurricane Deductibles
Unlike your regular deductible (usually $1,000-$2,500), Florida policies have a separate hurricane deductible that's typically 2-5% of your dwelling coverage. On a $400,000 home, a 2% hurricane deductible means you'd pay $8,000 out of pocket before insurance kicks in for hurricane damage.
This catches many homeowners off guard after a storm. Review your policy now so you're not surprised later. Some insurers offer lower hurricane deductible options for an additional premium.
What's NOT Covered
Flood Damage
Standard policies exclude flood. You need separate NFIP flood insurance or private flood coverage—even if you're not in a flood zone.
Sinkhole Damage
Catastrophic ground cover collapse may be covered, but full sinkhole coverage usually requires a separate endorsement in Florida.
Mold (Limited)
Most policies severely limit or exclude mold coverage. Some offer optional mold endorsements for additional premium.
Wear and Tear
Gradual deterioration, maintenance issues, and aging roof damage typically aren't covered. Insurance is for sudden, unexpected events.
Replacement Cost vs. Actual Cash Value
Always opt for replacement cost coverage if available. Actual cash value (ACV) deducts depreciation—meaning your 10-year-old roof might only get you 50% of replacement cost after a hurricane. The premium difference is usually worth the protection.
Frequently Asked Questions
How much will Florida home insurance rates decrease in 2026?
+When will Florida insurance rate cuts take effect?
+Why are Florida insurance rates finally going down?
+Will all Florida homeowners see lower insurance rates?
+Should I switch insurance companies to get a lower rate?
+Need Assistance?
Our Florida-based team is here to help with property tax questions. For insurance-specific advice, we recommend consulting a licensed insurance agent.
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Property Exemption Team
Our team includes licensed real estate professionals and specializes in Florida Homeownership Guidance. This guide was researched using official sources including the Governor's Office, Florida Office of Insurance Regulation, and Citizens Property Insurance.