Ron DeSantis announces rate cuts for Citizens Property Insurance customers

In recent developments from Tallahassee, Florida, Governor Ron DeSantis has made a significant announcement regarding Citizens Property Insurance Corp., notably affecting customers in South Florida. On a Wednesday, he revealed that a substantial portion of these policyholders will see decreases in their insurance rates this year, with particular focus on areas such as Miami-Dade and Broward counties. Approximately 73 percent of homeowners in Miami-Dade County can expect an average rate reduction of around 6.3 percent, while 52 percent of those in Broward County will receive an average cut of 4.5 percent. This reduction comes amidst broader discussions about insurance rates statewide. In June, the Citizens Board of Governors had previously approved a proposal that sought an average 13.5 percent increase for the most common homeowners' policy type, known as homeowners' multi-peril coverage. However, the state Office of Insurance Regulation has yet to make a definitive ruling on this proposal, highlighting the ongoing volatility in Florida's insurance market, particularly in relation to homeowners insurance. Citizens Property Insurance Corp. serves as the insurer of last resort in the state, but has recently grown to become the largest property insurance provider in Florida due to significant issues within the private insurance market, which has seen rate hikes and reduced availability of policies. Critics have pointed out that Citizens' lower rates can disincentivize policyholders from transitioning to private insurance providers, creating an imbalance in the market that policymakers are trying to address. The rate decreases announced by DeSantis are viewed as an essential step to make coverage more affordable for homeowners in a region where insurance costs have previously been cited as burdensome. While the full details of the rate adjustments are yet to be released, the governor's announcement aims to provide some relief amid ongoing efforts to stabilize Florida's property insurance landscape.