The Florida Office of Insurance Regulation (OIR) has approved an average rate increase of 14% for the upcoming year. Rate changes can be concerning, but these adjustments are necessary to ensure we can protect your property and pay claims when you need us most.
Why the Increase?
As Florida's insurer of last resort, Citizens is required by law to:
- Charge rates that cover potential losses (actuarially sound)
- Avoid competing with private companies
In many areas of the state, Citizens’ premiums remain well below private-market company premiums. That’s because, unlike private insurance companies, Citizens' rate increases are capped by law.
Since 2010, those capped rates have not kept pace with increases in the private market. In areas like Miami-Dade County, Citizens’ rates would need to increase by 82% to reach competitive levels with private carriers.
While these caps have benefited Citizens' policyholders, they place an additional financial burden on the other 85% of Florida insurance consumers who are not Citizens' policyholders. They would be forced to pay assessments on Citizens' losses following a major storm if Citizens exhausted its ability to pay claims.
While no one wants to pay higher insurance premiums, there is good news. On average, Citizens' rate increases are lower than private market rates. Also, Florida's insurance market is showing signs of positive change. New insurance companies are entering the market, and existing companies are expanding their coverage areas.
Most importantly for consumers, some insurance companies are requesting steady rates or even reductions for 2025.
What This Means for You
As the market improves, you may have more options for coverage. Private insurance companies might offer competitive rates and more comprehensive policies. We encourage you to explore these options as they become available. Your agent is best positioned to help you navigate the improving Florida market.
Our commitment to you remains the same. We strive daily to operate efficiently, provide excellent customer service, and inform you about changes that may affect your policy. We appreciate your trust in Citizens and understanding as we continue working hard to protect your property.
