by Mike Colpitts 
Just in time for the heart of hurricane season, Florida insurance premiums fall on both homeowners insurance and auto policies. The drop in rates is a move in the right direction for Floridians who have been paying higher insurance premiums since Hurricane Ian hit the Gulf Coast almost three years ago.
The Florida homeowners insurance market took its hardest hit in years following the series of hurricanes to hit the state. Insurance rates have now lowered in most cases, and even state officials are recommending to homeowners and auto owners to price shop for better deals.
Florida’s insurance commissioner, Mike Yaworsky, announced that auto insurance rates in the state are dropping.
Florida’s top five auto insurance groups have reduced rates an average of 6.5% this year. The rates are down from 2023’s alarming increase of 31.7%, according to state regulators. Some car owners have even been able to cut their insurance rates in half after shopping for new policies.
“The continued reduction in auto insurance rates is yet another sign that Florida’s reforms are working,” said Gov. Ron DeSantis. “We will protect our reforms from those who seek to undo them and continue to fight for Floridians.”
DeSantis efforts to lower Florida insurance premiums have been dynamic, especially for a governor who cannot seek re-election because of term limits.
In Southwest Florida insurance premiums fall at an average of 15% to 20% on most insurance policies and even more on homes that are valued at $1-million or more. The reduction comes at a critical time for Florida as homeowners deal with a slower real estate market than in many years and as the hurricane season reaches its historically most active time.
Florida homeowners insurance reduction in rates follows increases as much as four times more for Florida homeowners insurance than before Hurricane Ian hit in 2022. Those that were able to find a new insurance carrier paid steep new premiums for the same or even less coverage, and then saw increases spike again the following year.
Declines on insurance rates depends on the age and type of construction of homes. Cement block built homes are the least expensive to insure. But the location of homes is also a critical factor. Homes located on the oceanfront or other waterways like canals are more expensive to insure.
The recovery process after the series of hurricanes Florida has experienced is also a pivotal fact. Insurance companies purchase re-insurance on the policies they sell to protect their interest and insure that they make a profit.
Older homes are also more expensive to insure, with homes that were built in the 1950’s and 60’s being as much as double to insure compared to newly built homes. Homes with tile roofs are also more expensive to get polices on compared to other roofs. A home’s history, which is dictated in the insurance industry’s scoring system is also critical. The industry uses a CLUE score to underwrite policies for each policy they write.