Monroe County property owners insured through Citizens Property Insurance Corp. can expect an increase in their premiums when they renew their policies later this year.
On Feb. 5, the Florida Office of Insurance Regulation (OIR) approved rate increases of 6.6% for the more common multi-peril coverage. Details weren’t provided in the order on specifically how much more policyholders in the Keys would pay. They can expect an increase, however, as the new rates take effect June 1.
Last June, Citizens’ board of directors approved a request detailing a 13.5% increase for all policyholders. As prescribed by law, Citizens must charge actuarially sound rates which aren’t competitive with the private market. The insurer must also comply with a glide path that only allows annual rate increases of 1%; in 2025 that cap was 14%.
A public hearing held in Tallahassee last August saw Citizens explaining the requested increases to OIR actuaries. Mel Montagne, president for Fair Insurance Rates of Monroe (FIRM), and Joe Walsh, vice president for FIRM, were the only two who provided testimony why OIR should turn down any rate increases in Monroe County.
“FIRM is still waiting for county-specific rates to see where we are,” Montagne told Keys Weekly in relation to OIR’s rate approval for Citizens.
OIR’s order approving the rate increases, albeit lesser than what Citizens initially proposed, came after months of uncertainty over what the result would be for policyholders. Citizens sought higher rates in several previous requests, explaining it charged less than private carriers. Tim Cerio, Citizens CEO, told state lawmakers the entity has been charging below-market rates during a subcommittee meeting at the state capital. He even said customers are receiving “subsidized insurance not based on any economic need.”
Gov. Ron DeSantis has lauded recent legislative reforms he says have produced a healthy insurance market. In 2022, the state Legislature passed a bill eliminating one-way attorney fees related to assignment of benefits, ending the incentive for attorneys to mislead claimants. Legislation also prohibited roofers from paying or absorbing insurance deductibles.
Another bill tightened Citizens eligibility by steering potential and existing policyholders to private carriers if a comparable policy was available. Citizens had more than a million policies during 2022. By 2024, 477,000 policies were moved out of Citizens to private insurers offering competitive rates.
“It is common and appropriate for Citizens’ rate-making process to involve a deliberate and thorough regulatory analysis, especially after a particularly active hurricane season,” Citizens said in a statement following the order of approval. “Moreover, as Gov. DeSantis stated, the 2025 rates reflect the many positive developments that have taken place in the Florida property insurance market since our original recommendations were filed.”
Montagne told state officials last August that, between 2003 and 2021, Monroe County policyholders paid premiums which helped Citizens profit by nearly $860 million. He also said the ever-increasing windstorm premiums are especially hitting working families who live in homes built by local Habitat for Humanity organizations in the Florida Keys. Montagne explained their mortgage payments are 30% of the household income, at the time of closing, for a period of 30 years. Any increases like premium hikes by Citizens could price families out of these homes. Legislation could be filed for the state Legislature’s consideration to mitigate the squeeze on working families who achieved the home-buying dream thanks to Habitat.
OIR’s rate approvals for Citizens come days after DeSantis said Citizens policyholders in Miami-Dade and Broward counties would see premium decreases during a visit at Florida International University on Feb. 5. Specifically, 75% of policyholders in Miami-Dade would get a 6.3% decrease, while 52% of policyholders in Broward would experience a 4.5% drop in premiums. Monroe County was never mentioned to receive a decrease during the governor’s visit. However, DeSantis said policyholders statewide would see an average decrease of 5.6%.
In addition, DeSantis announced auto insurance rate reductions for Floridians insured through GEICO, 10.5%, Progressive, 8.1%, and State Farm, 6%.
