Messages from the Market: Citizens Insurance Rate Cuts May Help Central Florida Homeowners

Florida’s state-run insurer of last resort, Citizens Property Insurance Corp., has been ordered to reduce rates more sharply than it originally requested—news that could affect many Central Florida homeowners starting June 1.

Earlier, Citizens’ board proposed a modest 2.6% average statewide rate cut. That plan was rejected by regulators, and under direction announced by Governor Ron DeSantis, the Florida Office of Insurance Regulation approved a deeper 8.7% average statewide reduction instead.

According to the Governor’s office, more than 150,000 policyholders will see rate cuts exceeding 10%, marking the first broad-based reductions by Citizens in over a decade.

For homeowners in Orange, Osceola, Lake, and Brevard Counties, the picture is still developing. In Citizens’ initial December proposal, these four counties were actually slated for rate increases, even as other parts of the state saw decreases.

The revised cuts announced by the state override that proposal—but county-level details for Central Florida have not yet been released. Citizens has confirmed it is still awaiting the final, formal order from regulators that will determine how the deeper cuts are allocated by county. As of now, there has been no specific mention of Seminole County in the state’s announcements.

State leaders point to insurance litigation reforms passed in 2022 and 2023, which reduced legal costs for insurers and encouraged some private carriers to request lower rates. South Florida—where litigation-related costs were highest—will see the largest confirmed reductions, averaging more than 13%.

Once county-specific rates are released, it will be important to review your renewal carefully and compare options in the private market where available. As always, understanding how statewide insurance changes affect your specific property—and your long-term housing costs—is key to making informed decisions in Florida’s evolving insurance landscape.

That said, lower rates don’t always translate into dramatically lower premiums. Rising construction and rebuilding costs have kept average premiums relatively flat statewide, even as rates stabilize. If you’re insured through Citizens in Central Florida, don’t assume an automatic increase or decrease just yet. Final numbers are still pending.

Source: Orlando Sentinel