As new homeowners insurance companies come to Florida, Citizens banks on steep rate hike proposal

Florida property owners are wisely shopping around these days as nearly a dozen new private insurance companies have joined the market this past year.

The latest is Trident Reciprocal Exchange, announced by Florida Office of Insurance Regulation (OIR) Commissioner Michael Yaworsky.

That addition follows eight new property insurers entering the Florida market, along with others from last year.

Meanwhile, the Board of Governors for Citizens Property Insurance, the state's insurer of last resort, approved a steep 14% statewide average increase in 2025 for all Personal Lines policies, including homeowners, condominium unit owners, dwellings, renters and mobile homes.

If the Office of Insurance Regulation approves the rate hike, it would likely increase homeowner multi-peril (HO-3) policy rates by an average of 13.5%. Condominium owners would see an average 14.2% increase. It would affect renewals after Jan. 1, 2025.

In 2023, the average cost of home insurance with Citizens was $5,979 per year for a policy with $300,000 in dwelling coverage, according to PolicyGenius.com, an independent consumer-oriented insurance agency. The national average for similar coverage is $1,754 per year.

What does it mean for business?

Analysts are weighing in on what the additional insurers could mean for the state's property insurance landscape. More options and stronger competition should finally begin stabilizing the market and lowering prices.

"Florida's insurance market continues to strengthen, showing signs that recent legislation is having positive impacts on the property insurance market," Yaworsky said in a recent statement.

After some major players departed, the state recruited more insurers, giving consumers more choices. However, finding an insurer willing to back coastal communities in South Florida might still be a challenge.

But it never hurts to make a call, especially if your structure is well-built, has hurricane-tempered improvements, and upgraded amenities, such as electrical panels, water heaters, air-conditioning units and plumbing fixtures within ten years old.

Here are the newer property and casualty insurers and how you or your broker can reach them:

Ovation Home Insurance Exchange (888) 247-0482

Manatee Insurance Exchange (866) 651-4441

Condo Owners Reciprocal Exchange (CORE) (844) 713-5800

Orange Insurance Exchange (866) 303-8970

Orion180 Select Insurance Company (866) 590-3550

Orion180 Insurance Company (321) 213-6222

Mainsail Insurance Solutions (813) 855-9990

Tailrow Insurance Companies (HCI Group) (888) 210-5235

Sypher (888) 391-0264

Trident Reciprocal Exchange (PURE) (888) 813-7873

Mark Friedlander of the Insurance Information Institute said that adding more insurers is "very positive for … consumers because it will give homeowners a choice now (hen) shopping for coverage."

According to reports, the Citizens Depopulation Program has been going strong. So far this year, OIR has approved 13 companies to assume more than 354,000 policies from Citizens. In 2023, more than 275,000 policies were assumed.

OIR also approved the acquisition of Trusted Resource Underwriters Exchange, a Florida domestic property and casualty reciprocal insurer, to expand the insurer's underwriting capacity.

As a result, more than $1.25 billion of capital is being invested into Florida's property and casualty insurance market.

"We look forward to continuing this work and promoting a competitive market for policyholders," Yaworsky said.