It has been close to a decade since Florida residents and insurers were hit with devastating hurricanes, and since then homeowner insurance rates have only surged as the Tropics have remained quite with no major storms.
Nonetheless, Florida residents pay some of the highest property insurance rates in the nation.
But there is good news for 2015. Florida home insurance rates are set to decrease, according to Citizens Property Insurance Corporation.
Citizens is the state-run insurer, which has about 933,000 policies and takes in about 4,000 new applications a week. It’s the largest property insurer statewide.
The Florida Office of Insurance Regulation said Friday that the average Citizens’ homeowners rate will fall by 3.7 percent, slightly more than the 3.4 percent decrease Citizens had originally sought in June. Rates will fall 4.6 percent, on average, for mobile home owners with multi-peril coverage.
There have been eight consecutive hurricane seasons in Florida with no major storms and five years of rate adjustments as allowed by state law, including annual increases up to 10 percent, Citizens says.
About 58 percent of customers will have reductions of at least 5 percent in 2015.
“The bottom line is that today’s approval of our recommended rates, with some minor adjustments, reinforces the fact that the property insurance market continues to improve across the board in Florida,” Citizens president and CEO Barry Gilway said.
Citizens is paying much less this year for reinsurance, additional coverage that insurers buy to help cover catastrophe claims. Those savings are being passed on through lower rates.