Most Citizens Insurance customers in South Florida could see rates fall by more than 11% in 2026

Most customers of state-owned Citizens Property Insurance Corp. could see significant rate decreases in 2026.

The company is recommending an average 2.6% statewide rate decrease for personal lines accounts beginning on June 1, the start of hurricane season.

Across the state, a projected 463,096 policyholders would save an average of $359 compared to 2025, according to a document presented to the company’s Board of Governors on Wednesday. That document was based on policy totals from April, before Citizens projected it would be insuring far fewer properties by the end of 2025.

Most South Florida homeowners would see far larger decreases while average rates are projected to increase in several Central Florida counties. Citizens spokesman Michael Peltier said the projected rate decreases remain correct despite the reduction in policies.

Citing the April policy totals, the document projects that 228,961 personal lines policyholders in South Florida’s tricounty region would see rates decreased by more than 11%.

In Broward County, 72.1% of policyholders would see rates fall by 12.6%, lowering premiums by an average $462.

In Palm Beach County, 76.9% of policyholders would see rates decreased by 11.7%, lowering premiums by an average $423.

In Miami-Dade County, 76.9% of policyholders would see rates decline by 13%. They would save $433 on average.

Although the company’s Board of Governors OK’d the rate recommendations during its quarterly meeting on Wednesday, they still must be approved by the Florida Office of Insurance Regulation following public hearings.

Citizens officials attributed the rate decreases to continued success of reforms enacted in 2022 and 2023, which eliminated plaintiffs attorneys’ rights to collect legal fees whenever litigation resulted in claims payments for any amount over insurers’ initial offers.

Tim Cerio, Citizens president and CEO, said that Citizens needed $500 million less in premiums in 2025 to cover its expenses because of the reforms.

“So you can see where litigation costs drive up rates for Citizens and the private sector,” Cerio said. “You get a handle on litigation, rates come down. This is all because of the reforms championed by the governor.”

Other cost-saving programs cited during the meeting as driving down rates included the diversion of litigation to the Florida Division of Administrative Hearings and transfers of Citizens policies to private-market insurers through its depopulation program, officials said.

About 1.3 million policies have been shed through the depopulation program since 2023, according to Citizens data. After peaking at about 1.4 million in September 2023, the company now estimates finishing 2025 with 385,000, its lowest-ever policy count.

Cerio said the rate decrease is the first for the company in 10 years.

Personal lines accounts include multi-peril and dwelling/fire coverage of owner-occupied single-family homes, condo units, and mobile homes. It also includes wind-only hurricane coverage.

Overall rate increases are projected for four Central Florida counties.

Personal lines customers in Orange County would see rates increase by an average 1.8%. Osceola County policyholders would see a 5.2% hike, while Lake County customers would see rates climb an average of 4.1%. In Brevard County, rates would jump 6.5%.

Customers in Polk County would see an average decrease of 0.7% and rates for Seminole County policyholders would decline by an average of 4.1%.

Peltier said that the South Florida decreases stem from the reforms having “a particularly positive effect” in the region, “which historically experienced the highest rates of litigation.”  Regarding the increases in Central Florida, he said that rates are “still catching up to make (them) actuarially sound” — which is an insurance phrase meaning adequate to cover expected losses.

In South Florida, policies covering owner-occupied single family homes would see the largest average rate decreases: -14.1% in Broward and Miami-Dade and -11.9% in Palm Beach.

Condo unit owners in the three counties would see significant savings from average rate decreases as well: -8.2% in Broward, -10.3% in Miami-Dade and -6.8% in Palm Beach.

After steadily increasing for the past decade, insurance costs for Florida policyholders, both with Citizens and private-market insurers, grew by just 0.03% between August and September, according to an analysis of state data by the South Florida Sun Sentinel.

Mark Friedlander, senior director of media relations for the insurance industry-funded Insurance Information Institute, said that private market insurers could be ready to follow Citizens’ lead next year.

After the state’s insurers were collectively recognized for achieving the nation’s lowest average rate and premium increases in 2024 and 2025, Friedlander said, “We anticipate more significant rate decrease filings from Florida home insurers in 2026.”

Ron Hurtibise covers business and consumer issues for the South Florida Sun Sentinel. He can be reached by phone at 954-356-4071 or by email at rhurtibise@sunsentinel.com.

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