Ed Dean
Florida Peninsula Insurance (FPI) has approximately 170,000 policyholders. The company announced that premiums could be on the decline for clients.
This month, FPI filed paperwork with its Florida insurance regulatory office, seeking approval for a 8.4% interest rate cut for homeowners premiums and a 12% reduction for condo owners in Florida.
According to the Peninsula, policyholders will be able to see a “significant premium reduction” in the second half of 2025 or the first quarter of 2026, if the insurance regulator approves the request.
Some insurance analysts are optimistic that this is the beginning of lowering or stabilizing costs for Florida consumers.
“This is a good sign that the market situation is not only stable, but also improving,” says Florida State University’s Center for Risk Management & Insurance and Charles Nice.
Another positive indication for Florida taxpayers is that the last resort Citizens Property Insurance Corp insurance company has clients falling from books and more insurers are doing business in the state.
In 2023 there were around 1.4 Floridians with policies with citizens, but now that figure has dropped to around 777,592.
Bankrate.com estimates that Florida homeowners will pay more than twice the national insurance average. The usual cost of 300,000 home coverage costs is around $5,730 per year.
Florida State Rep. and insurance analyst Brian Hodgers says things are moving in the right direction for Florida property owners. He has praised the low cost of state litigation reforms over the past few years. “We’ve seen a decline in frivolous litigation, which leads to lower premiums for consumers,” Hodgers said.
However, the insurance industry has warned that if the state gets hit by one of two storms for the rest of the hurricane season, consumer costs could be lower.
