For the second year in a row, Florida homeowners are seeing positive movement in the state’s challenging insurance market, a welcome shift after years of sharp increases and uncertainty.

Florida Governor Ron DeSantis recently announced that Citizens Property Insurance Corporation, the state’s insurer of last resort, has been ordered to roll back its rate requests even further than initially proposed. This reflects what state leaders describe as a stabilising insurance environment, particularly following recent litigation reforms.

Citizens Insurance Announces Meaningful Rate Reductions

Citizens originally proposed a 2.6% statewide average rate reduction, but regulators ultimately approved a significantly larger 8.7% average cut, effective June 1.

According to state officials:

• Over 150,000 policyholders will see rate reductions exceeding 10%

• South Florida homeowners are expected to see the largest decreases, with average cuts around 13–14%

• Some Central Florida counties previously expected to see increases may now experience relief, though final county-level details are still being confirmed

These reductions mark the first rate cuts from Citizens in more than a decade, an important signal for Florida’s broader housing market.

Why Are Florida Insurance Rates Finally Improving?

The improvement is largely credited to litigation reforms enacted in 2022 and 2023, which significantly reduced lawsuit-related costs for insurers. Historically, Florida accounted for a disproportionate share of insurance litigation, particularly in South Florida.

With legal exposure reduced, private insurers have begun filing rate reduction requests, allowing regulators to justify deeper cuts at Citizens as well.

That said, officials were clear: lower rates do not always equal dramatically lower premiums.

The Reality: Premiums Are Stabilising, Not Plummeting

Despite these encouraging headlines, construction and rebuilding costs remain elevated. State data shows:

• The average Florida single-family home insurance premium remains around $3,750 annually

• Month-to-month costs have stabilised, but widespread sharp declines are not yet materialising

In other words, the market is cooling, not collapsing and that distinction matters greatly for homeowners considering selling, refinancing, or relocating.

What This Means for Florida Homeowners & Sellers

From a real estate perspective, this shift is important:

• ✔ Buyers are becoming more confident as insurance volatility eases

• ✔ Sellers benefit from reduced buyer hesitation tied to insurance concerns

• ✔ Vacation-home owners see improved long-term holding stability

• ✔ Market conditions are becoming more predictable, not overheated

For homeowners considering selling in 2025–2026, stabilising insurance costs help protect buyer demand and pricing confidence, particularly in Central Florida and resort-driven markets.

Key Takeaway

Florida’s insurance market isn’t “fixed”,  but it is improving. Rate reductions at Citizens, combined with a more disciplined legal environment, suggest a healthier trajectory ahead.

For homeowners, this means better planning clarity.
For sellers, it means reduced friction.
For buyers, it means renewed confidence.

If you’re a Florida homeowner, vacation-home owner, or investor and want to understand how insurance trends impact your property value, timing, and strategy, I’m always happy to help.

📧 [email protected]
📞 321-333-1338
🌐 www.vacayreflorida.com

At Vacay & Co Real Estate, we help clients navigate the real numbers behind today’s market, not just the headlines.