Florida Peninsula Insurance Announces Rate Decrease Amid Legislative Reforms

Recent legislative reforms in Florida aimed at curbing excessive litigation have led to a notable decrease in insurance premiums for some homeowners and condominium owners. Florida Peninsula Insurance Co., based in Boca Raton, has taken a pioneering step by announcing an average 2% rate decrease for both new business and renewals beginning in July. This decision follows a dramatic reduction in litigation and claim filings, a change attributed to the 2022 and 2023 legislative actions which effectively terminated one-way attorney fees and assignment-of-benefits agreements, crucial factors previously driving up claim numbers.

Stacey Giulianti, the chief legal officer at Florida Peninsula, highlighted the significant drop in lawsuits from an average of 400 to less than 30 per month. This shift is primarily due to the majority of claims now being filed directly by property owners, rather than through lawyers and public adjusters. While their sister company Edison Insurance has not planned rate reductions, they have not sought increases either, which stands out in a market where other insurers have implemented or considered substantial rate hikes.

The impact of these reforms extends beyond just rate changes. Florida Peninsula and Edison have expanded their policy base significantly, growing from 150,000 policies to about 270,000. The broader implications of these changes hint at a potential trend toward more substantial rate reductions in the Florida insurance market, provided costs like inflation and building material prices stabilize. Additionally, the introduction of Ovation Home Insurance Exchange, a new reciprocal insurer approved to start writing policies, marks a continued effort to stabilize and expand insurance offerings in Florida.