Southwest Florida homeowners see signs of insurance relief, but high costs remain | Southwest Florida

PUNTA GORDA, Fla. — Florida insurance regulators say homeowners insurance rates are beginning to move in a better direction, with more companies seeking decreases and new insurers entering the market. For some Southwest Florida homeowners, however, the relief is only beginning to show up after years of steep increases.

Debra Prevost lives in a manufactured home in Punta Gorda. She said her homeowners insurance cost about $2,500 a year before Hurricane Ian. Today, she pays roughly $4,000 for what she describes as essentially the same coverage. Her premium did decrease this year by about $25.

“My past insurance, which was pre-Ian and then dropped after Ian for a lot of damage, that was about $2,500 a year,” Prevost said. “So approximately a year later, we’re looking at 4,000. Huge, huge. So big difference.”

Prevost is on a fixed income. To help with expenses and stay active, she cuts lawns for seven neighbors, who give her donations for the work.

“It’s almost half of my income,” Prevost said while discussing the different insurance and household expenses she faces. “Sometimes you have to go to a food bank. Sometimes you don’t go anywhere because gas is so high.”

The Florida Office of Insurance Regulation announced this week that Insurance Commissioner Mike Yaworsky approved rate decreases affecting more than 62,000 policies.

Four companies recently received approval for decreases that will take effect at renewal:

One Alliance North America Insurance Company: 10.4% decrease affecting 17,148 policiesSafe Harbor Insurance Company: 4.1% decrease affecting 10,501 policiesUnique Insurance Company: 3.2% decrease affecting 8,266 policiesVyrd Insurance Company: 10.4% decrease affecting 26,751 policies

OIR said that since January 2024, 48 companies have filed for rate decreases and another 53 have sought no change, or a 0% increase. The agency said its 30-day average request for homeowners rates is now a 4.8% decrease, compared with a 1.1% decrease one year ago and a 5.2% increase five years ago. Yaworsky said OIR is reviewing additional requests for decreases and expects more rate cuts heading into 2027.

Those decreases do not mean every homeowner will see the same change. Mark Friedlander, Florida spokesman for the Insurance Information Institute, told WINK News that average premiums are slowly declining in much of the state.

“What we are seeing is average premiums are declining,” Friedlander said. “Slowly, but they are coming down.”

Using Florida Office of Insurance Regulation data comparing March 2025 with March 2026, Friedlander said average premiums decreased 1.5% in Lee County and 1.3% in Charlotte County. Collier County saw a slight 0.2% increase. He said 51 of Florida’s 67 counties experienced an average premium decrease over that period.

Friedlander said the average annual premium is about $3,576 in Lee County, $3,160 in Charlotte County and $5,344 in Collier County.

“Lee, Charlotte, and Collier counties are all rated very high risk,” Friedlander said.

He pointed to hurricane exposure as one of the biggest reasons.

“Windstorm risk from tropical cyclones is high across all of Southwest Florida,” Friedlander said. “Some areas worse than others, but that is one of the big drivers.”

Rebuilding costs are another factor. Friedlander said construction materials, labor costs and other rebuilding expenses have risen substantially in recent years, which can increase how much an insurer could ultimately have to pay after a loss. That helps explain why a statewide or countywide average decrease does not guarantee that a particular homeowner’s premium will fall. Friedlander said insurers consider numerous factors, including the location and age of a home, construction type, roof condition, mitigation features, claims history and other characteristics.

One major difference in Florida’s insurance market today is the number of choices available to homeowners. Friedlander said more than 20 new insurers have entered the Florida market, while existing companies have also expanded.

“We’ve seen more than 20 new insurers enter the market,” Friedlander said. “The good news is for those homeowners that are still seeing very high premium renewals, you could shop your coverage. There are opportunities to shop your coverage.”

He recommends getting multiple quotes and asking insurers about available discounts, including bundling home and auto policies and wind-mitigation discounts. Friedlander cautioned homeowners against focusing only on the lowest price. A cheaper policy may have a higher deductible or different levels of coverage.

“We can’t guarantee you’re gonna find a lower-cost policy, but there are more opportunities today than there were a year ago for getting better-cost coverage,” Friedlander said.

For Prevost, even a small decrease is a change in the right direction.

“It’s hard,” Prevost said. “It’s hard for all of us.”