After hurricane Ian Florida saw drastic increases in insurance rates with lots of insurance providers going out of business or pulling out of the state. There was a mad scramble for anyone that owns real estate in Florida to find affordable companies to insure their properties. Some of the carries doubled and tripled their premiums making it almost impossible for homeowners to continue doing business with them. But, 3 years later, there is a change starting.
Over the past few months, I have noticed some changes. I normally use the state provided insurance, Citizens, for all of my single-family homes due to its cost effectiveness. Over the past 6 months the majority of my insurance policies with Citizens have been assumed by other insurance companies. Some of them are new, "Slide", and some are not, "American Integrity". This signifies that these carriers are willing to take on policies that are lower priced and therefore implies that the risk for these companies must be going down.
Yesterday I received an email from Tower Hill Insurance, a long-time provider of insurance in Florida that stated
"The combination of the favorable weather and the reduced litigation costs provides us the opportunity to lower rates for our members. Effective December 1, 2025, we will reduce our base rate by 5% on Homeowners (HO3) and Dwelling Fire (DP3) policies for both new and existing member policies."
After years of seeing rates going higher we may have now seen the tide turn.
Florida may be getting set up for a drastic turnaround in the housing market.
- Lower Interest Rates
- Lower Insurance Rates
- No Property Taxes
There is no guarantee that any of this will happen, but the signs are all there that all 3 will happen AND sooner than later.