Florida Peninsula Insurance Company has submitted a proposal to the Florida Office of Insurance Regulation (OIR) that could bring major relief to homeowners. The filing seeks an average 8.4% statewide premium reduction for homeowners, including a 12% decrease for condominium owners — the largest rate cut in the company’s 20-year history.
If approved, most policyholders could begin seeing the lower rates later this year or in early 2026.
A Rare Break for Florida Homeowners
While many insurers across Florida have been raising rates in response to inflation, costly litigation, and skyrocketing reinsurance costs, Florida Peninsula is moving in the opposite direction.
Dulce Suarez-Resnick of Acentria Insurance described the move as one of the most significant proposed premium reductions from a Florida-based insurer, with the potential to save tens of thousands of households substantial amounts.
Why Rates Are Dropping: Legislative Reforms at Work
The insurer attributes the proposed decrease to sweeping legislative reforms designed to tackle long-standing cost drivers in the property insurance market.
Key changes include:
- SB 2A (2022) and HB 837 (2023) reforms
- Restrictions on assignment-of-benefit (AOB) abuse
- Limits on one-way attorney fee misuse
- Tighter claims handling timelines and reduced opportunities for legal exploitation
According to Florida Peninsula President Clint Strauch, these reforms have significantly reduced frivolous lawsuits and inflated claims, enabling insurers to pass savings back to consumers.
“This rate reduction shows that the legislative reforms have successfully addressed the root cause of increasing insurance premiums in Florida,” Strauch said.
Signs of a Stabilizing Insurance Market
Florida’s property insurance market — long considered one of the most volatile in the nation — is showing signs of recovery:
- In 2024, the market recorded its first underwriting profit in nearly a decade.
- Reinsurance costs dipped in 2024 and remained stable through 2025.
- The OIR approved 14 new residential carriers since reforms took effect, boosting market capacity.
- Statewide, insurers went from a $741 million loss in 2022 to $944 million in net income by the end of 2024.
- Premium growth slowed dramatically, with just a 1% average increase in 2024 — the smallest in years.
Challenges Remain
Despite these improvements, Florida remains the most expensive state for home insurance in the U.S. High hurricane risk, climate change, and the lingering threat of litigation still drive premiums well above the national average.
Across the country, homeowners in climate-sensitive areas have faced premium increases of up to 82% in recent years.
What’s Next
If the OIR approves the filing, policyholders could see reduced rates as soon as their next renewal cycle — a rare and welcome change for Florida homeowners used to annual price hikes.
