Rates are dropping statewide. But renewals won't update themselves.
If you've owned a home in Florida over the past few years, you already know the story. Premiums climbed year after year, insurers pulled out of the state, and finding affordable coverage felt like a full-time job. That chapter isn't completely closed, but for the first time in a long time, the news is actually good.
What Changed
The turnaround traces back to legal reforms passed in 2022 and 2023 that eliminated one-way attorney fees and restricted assignment of benefits abuse, two practices that had flooded Florida courts with inflated insurance claims and driven carriers out of the state. Since those reforms were enacted, 17 new insurance companies have entered the Florida market. The reduction in litigation costs gave insurers the confidence to stay, compete, and, in many cases, lower what they charge.
The Numbers
Citizens Property Insurance Corporation, the state-backed insurer of last resort, will reduce homeowners' insurance rates statewide in 2026, with multiperil policyholders seeing an average decrease of 8.8% and wind-only policyholders seeing an average reduction of 5.5%. All Citizens personal lines policyholders will receive rate decreases of at least 2%.
The private market is moving in the same direction. According to the Florida Office of Insurance Regulation, since reforms were enacted, OIR has received more than 150 residential filings for rate decreases or zero percent increases. Taken together, the statewide picture is one of genuine stabilization, with more carriers competing for business and fewer rate increases being filed than at any point in recent years.
The new Citizens rates take effect July 1 for new policyholders and apply to existing policies at renewal.
What This Means for Buyers and Sellers
Insurance costs have been one of the biggest friction points in Florida real estate over the past several years, affecting what buyers can afford and how deals get structured. A stabilizing market changes that conversation. Buyers have more predictability when budgeting for monthly costs, and sellers are no longer competing against the perception that Florida insurance is unmanageable.
That said, not every homeowner will automatically see a decrease. Rates vary by carrier, location, home age, and claims history. Shopping your policy at renewal and working with a knowledgeable insurance advisor is still the best way to make sure you're getting the coverage you need at a price that makes sense.
Ryan Pappy, President of Keyes Insurance, says: "Rates are coming down, but the smartest thing a homeowner can do right now is not assume their renewal will automatically reflect that. Every policy is different. This is a great time to review your coverage and make sure you're in the right place."
For the stabilization to continue, the market needs to avoid major storm seasons and maintain the legal environment that makes it possible. But right now, the trajectory is the best it has been in over a decade.
Make Sure Your Coverage Reflects the New Market
If you haven't reviewed your homeowner's insurance recently, now is the time. Keyes Insurance can help you navigate your options and make sure you're getting the best coverage available. To learn more, visit keyesquote.com.
Data and Information Sources
Citizens Property Insurance Corporation, March 4, 2026: citizensfla.com
Citizens Property Insurance Corporation, 2026 Approved Rate Changes by County (primary data): citizensfla.com
Florida Office of Insurance Regulation, October 23, 2025: floir.gov
The Keyes Company has a business relationship with Gallagher Property and Casualty, LLC d/b/a Keyes Insurance. Because of these relationships, referrals may provide Keyes Company and its owners a financial benefit. You are not required to use the listed provider as a condition for settlement of your loan or the purchase, sale, or refinance of the subject property. For more information, visit keyes.com
