Florida homeowners see insurance rate cut with one insurer

Florida homeowners see insurance rate cut with one insurer | Insurance Business America

Insurance News

Florida homeowners see insurance rate cut with one insurer

New policies reflect positive market shift

Insurance News

By
Mav Rodriguez

Heritage Insurance Holdings Inc. has received approval from the Florida Office of Insurance Regulation for a 3.3% rate decrease on its Florida homeowners’ (HO3) policies. The adjustment is expected to provide financial relief to policyholders, applying to both new and renewal policies beginning August 20, 2024.

The rate reduction is attributed to recent Florida legislative changes that have eliminated one-way attorney fees and reduced other abusive claims practices, leading to improved loss trends and a stabilized reinsurance market. The changes have enabled Heritage to lower rates while maintaining stable or improving margins.

According to Heritage Insurance CEO Ernie Garateix, the approved rate decrease reflects the company’s commitment to offering affordable insurance solutions.

“The approved rate decrease is a testament to our efforts in effective risk management and strategic underwriting practices, as well as the favorable impact of legislative changes made in the 2022 special session of the Florida legislature. We are dedicated to offering our customers essential homeowners’ insurance while maintaining the high level of service they expect from us,” Garateix said.

The rate adjustment aligns with industry trends where improved risk management and favorable loss ratios have resulted in lower costs for insurers and policyholders. It also reflects the company’s strong financial health and ability to adapt efficiently to market conditions, it claimed.