by Mike Colpitts 
The Brief
- A major Florida insurer cuts rates the most it has in its 20 year history.
- The rate cut comes after other Florida homeowner insurance companies have made similar rate cuts.
- The move comes nearly three years after Hurricane Ian hit Fort Myers, which was the third most costliest storm on record at $112 billion.
A major Florida insurance company is cutting rates for homeowners the most it has in its 20 year history.
Florida Peninsula Insurance has put in a rate cut request with state insurance regulators to slash homeowner premiums 8.4% on homes and 12% for condo owners. The move comes after insurance companies throughout the state have gradually cut rates following a jump in rates after Hurricane Ian nearly three years ago.
Other insurance companies have requested similar rate cuts in the last year, including:
- Safe Harbor (-11.9%),
- U.S. Coastal (-11.9%),
- Castle Key (-11.2%),
- Centauri Specialty (-9.5%)
- Southern Oak (-8.5%).
Homeowners rates were increased as much as 400% for homes on waterways and those impacted by Ian following the devastating storm. If approved, the cut would go into effect Oct. 31.
The industry was slammed with damage from Hurricane Ian, which was upgraded to a 5 on the hurricane rating system more than a year after impact. Ian caused an estimated $112 billion in damages, making it the third costliest storm on record. Insurance companies are still paying out on damages resulting from the storm and some homeowners are still fighting with insurance companies over settlements.
It was the most expensive storm in terms of damage to ever strike Florida. More than 3,000 homes were destroyed by Ian in the Fort Myers area alone and more than 50,000 needed repairs as a result of the massive storm.
The drop in insurance premiums is welcome news for Florida homeowners who should begin to see more rate decreases over the next year or two, according to insurance industry experts.
Florida Peninsula is believed to be the largest seller of homeowners policies in the state and is apparently cutting rates to attract more business as a major Florida insurer cuts rates. Florida legislative reforms in 2022 and 2023 are reducing insurers’ claims and litigation costs.
An analysis by the South Florida Sun Sentinel showed that companies that insure about a third of the state’s homeowners were able to reduce costs between January and May, while customers of insurance companies that insure the other two thirds saw increases.
Stacey Giulianti, Florida Peninsula’s chief legal officer, said the company’s proposed rate decreases are so substantial that they will drive down insurance costs for a large number of the company’s customers. Rate cuts should be seen by most customers later this year.
“We’ve asked for very significant rate decreases, which obviously is phenomenal for more than 80,000 of our customers,” he said.
The rate decrease requests could not be verified in publicly available versions of Florida Peninsula’s filings with the Office of Insurance Regulation. The company applied “trade secret” designations that redacted the rate filings, as well as the types and numbers of affected policies.
The insurance industry is well known for covering its actions in volumes of paperwork and making redactions as it records record high profits in most sectors.
The decreases will go to customers with the company’s Preferred and Elite policies. The cuts will not be provided for policies acquired under a state program to reduce the number of policies for Citizens Property Insurance Corp., the state-owned insurer of last resort.