Lower FL Reinsurance Rates Begin Trickling Down to FL Homeowners’ Home Policies

Homeowners in Florida are starting to see the benefits of lower insurance rates thanks to a more competitive market and lower reinsurance rates, according to the top regulator in the state. In the 13-page report from the Office of Insurance Regulation (OIR), findings showed that some large home insurers are beginning to lower rates in response to lower cost of reinsurance.

It’s a positive piece of new for Florida homeowners who have seen a decade of steady increases in home insurance rates. The report came as a response to questions raised recently by Florida’s Chief Financial Officer about lower reinsurance rates and their impact on homeowners’ policy rates in the state.

The report from the OIR includes data from 30 private home insurance companies that make up roughly 70 percent of the market in Florida. Half of the insurers have submitted rate filings that are based on their reinsurance costs for 2013-14, while some have yet to file their rates. At least five of the insurers that have already had lower rates approved are reporting lower reinsurance costs.

Florida’s largest private insurer, Universal Property & Casualty, has reduced its policy rates by roughly 2.4 percent, and has seen a reduction in reinsurance costs of nearly 16 percent. Another insurer, Security First Insurance, has lowered its homeowners’ insurance rates by over 9 percent and noted at 4.9 percent decrease their cost of reinsurance.

Within the report, other Florida home insurers reported lower rates or reinsurance leading to lower rates for policyholders as well.