Florida Approves 12.8% Average Renters Insurance Rate Cut for More Than 121,000 Policies

Florida regulators have approved an average 12.8 percent rate cut for renters insurance policies written by American Modern Home Insurance Co., lowering premiums for roughly 121,898 policies statewide starting Oct. 11, Insurance Commissioner Mike Yaworsky announced Friday, Oct. 2.

The decrease applies to new policies and renewals taking effect on or after Oct. 11. It is the latest in a series of rate reductions the Florida Office of Insurance Regulation has approved this fall, and one of the few aimed at renters rather than homeowners, a group that includes millions of Floridians living in apartments, rented houses and condos they do not own.

What the decrease covers

The approval covers American Modern Home's HO-4 policies, the standard form for renters insurance. Unlike a homeowners policy, an HO-4 policy does not insure the building itself, which is the landlord's responsibility. It generally covers a tenant's personal belongings, liability if someone is hurt in the unit, and additional living expenses if the rental becomes uninhabitable after a covered loss.

The 12.8 percent figure is a statewide average. According to the Office of Insurance Regulation, some policyholders may see larger decreases, and average cuts in more than 30 Florida counties will range from 13.1 percent to 13.9 percent. Individual results will vary depending on a policyholder's location, coverage amounts and deductible.

Biggest impact in Orange and Broward

American Modern Home has its largest concentrations of renters business in Orange and Broward counties, home to Orlando and Fort Lauderdale and two of the state's largest rental markets. The state said average rates there are expected to fall by more than the statewide average.

Because the cut takes effect at renewal, current customers will see the lower rate when their policy next renews on or after Oct. 11, rather than as an immediate refund on a policy already in force.

The state counts the affected business as roughly 121,898 exposures, the regulatory term for insured units, which for renters coverage generally corresponds to individual policies. In Florida, insurers must file proposed rates with the Office of Insurance Regulation, which reviews the company's loss experience, reinsurance costs and other data before approving, modifying or rejecting the request. Approved decreases generally reflect lower projected costs for the business being rated, such as claims and reinsurance.

What the commissioner said

In announcing the approval, Yaworsky said his office is approving "major rate decreases across the board," including for Florida renters. He said regulators are working to bring rates down for all policies and will keep pressing companies to do more, ending his statement with "Stay tuned!"

The announcement is part of a steady stream of rate news from the Office of Insurance Regulation as state leaders point to signs that Florida's property insurance market has stabilized after several years of insurer failures, steep premium increases and companies pulling back from the state.

The homeowners cuts that came first

The renters decision follows four homeowners rate reductions the office announced in late September, which together affect more than 62,000 policies, according to figures reported by WINK News.

Those were cuts to homeowners coverage, which insures the structure of a home and is far more expensive than renters coverage. The American Modern Home decision is separate and applies only to its renters policies.

A broader shift in rate filings

State figures cited in September showed that 48 companies had filed for rate decreases since January 2024 and 53 had sought no change at all, according to WINK News. The average rate request over a recent 30-day period was a 4.8 percent decrease, compared with a 1.1 percent decrease a year earlier and a 5.2 percent increase five years earlier. More than 20 new insurers have entered the Florida market, and 51 of the state's 67 counties saw average premium decreases, according to the same reporting.

State officials credit that shift to the legislative overhaul passed in 2022 and 2023, which curbed one-way attorney fees for property insurance lawsuits, ended assignment of benefits agreements for new policies and made other changes aimed at reducing litigation costs that insurers had blamed for driving up premiums.

Relief has been uneven. In Southwest Florida, where Hurricane Ian struck in 2022, WINK reported that average homeowners premiums in Lee County dipped only 1.5 percent and Collier County rose slightly, with many residents still paying far more than they did before the storm.

Why renters matter in this market

Renters insurance usually costs a fraction of a homeowners policy, so a 12.8 percent cut translates into smaller dollar savings than a comparable homeowners decrease. But renters make up a large share of Florida households, particularly in fast-growing metro areas such as Orlando and Broward County, and many landlords and apartment communities require tenants to carry renters coverage as a condition of the lease.

For those tenants, the policy is often a required monthly cost on top of rents that have climbed sharply in much of Florida over the past several years. A rate cut at renewal offers modest but direct relief.

The cut also comes with an important caveat: renters insurance generally does not cover flood damage. Tenants in flood-prone parts of Florida need separate flood coverage for their belongings, available through the National Flood Insurance Program or private carriers.

What's next

The new American Modern Home rates take effect Oct. 11 for new policies and at renewal for existing customers. Policyholders who want to confirm their new premium can review their renewal notice or contact their agent or the company.

Yaworsky has signaled that more approvals are coming, and the Office of Insurance Regulation posts rate decisions as they are finalized. Renters and homeowners who are not seeing decreases from their current carrier can compare quotes from other companies, including insurers that have entered the Florida market since the 2022 and 2023 reforms.