Florida insurer to slash homeowners rates by historic margin

One of Florida’s largest private market homeowners’ insurance carriers is cutting rates by the largest margin in its 20-year history.

Florida Peninsula Insurance filed for an 8.4% statewide decrease for homeowner’s premiums and 12% decrease for condo coverage, which will take effect late this year or early 2026, pending approval by the Florida Office of Insurance Regulation, according to a statement.

The South Florida-based carrier's rate decrease is one of the most substantial cuts by a Florida carrier since an industrywide rollback of costs began last year — more positive news for homeowners who are stretched thin from a record rise in prices.

Florida Peninsula said “most” of its policyholders will see a significant drop in premiums, but did not specify how many of the 189,000 policies it has in Florida would be affected. Florida Peninsula’s sister companies, Edison Insurance Co. and Ovation Home Insurance Exchange, have an additional 141,000 and 32,600 policies in Florida, respectively.

Insurance executives and regulators have credited historic reforms that addressed claims-related fraud and excessive lawsuits against insurers for the market correction. The legislative overhaul “stopped billboard lawyers’ ability to game the system,” Florida Peninsula said in the statement.

Florida Peninsula President Clint Strauch said the company is passing on savings to consumers after a “measurable” drop in legal expenses and inflated claims over the last two years.

Since January, nearly 30 companies have filed to lower residential rates, according to FLOIR. In 2024, Florida had the lowest average statewide rate increase nationwide, the agency said.

American Integrity Insurance, a Tampa-based carrier, announced a 6.9% rate reduction for roughly 55,000 of its homeowners policies last summer.

Another Tampa carrier, Heritage Insurance, was among the first Florida insurers to walk back rates with a 3.3% decrease last year. Heritage — and countless others — had aggressively raised rates over the prior two years, pushing its average premium per policy 23.7% higher before it announced the rate cut.

Some carriers have sought rate increases as high as 32%, according to FLOIR data.

“This rate reduction shows that the legislative reforms have successfully addressed the root cause of increasing insurance premiums in Florida,” said Strauch.