Most customers of state-owned Citizens Property Insurance Corp. could see significant rate decreases in 2026, though many of those in Central Florida counties will see increases.

The company is recommending an average 2.6% statewide rate decrease for personal lines accounts beginning on June 1.

Average rates are projected to increase in several Central Florida counties, including Orange, Osceola, Lake and Brevard, even as most South Florida homeowners see larger decreases than average.

During its quarterly meeting on Wednesday, the company’s Board of Governors attributed the statewide decreases to the continued success of reforms enacted in 2022 and 2023, some of which made it tougher for plaintiffs attorneys to collect legal fees from insurers.

Tim Cerio, Citizens president and CEO, said that Citizens needed $500 million less in premiums in 2025 to cover its expenses because of those reforms.

“So you can see where litigation costs drive up rates for Citizens and the private sector,” Cerio said. “You get a handle on litigation, rates come down. This is all because of the reforms championed by the governor.”

In another aspect of the reforms, Citizens has shed about 1.3 million policies through a depopulation program, which also helps it control costs. After peaking at about 1.4 million in September 2023, the company now estimates finishing 2025 with 385,000, its lowest-ever policy count.

Although the board OK’d the rate recommendations on Wednesday, they still must be approved by the Florida Office of Insurance Regulation.

Cerio said the rate decrease is the first for the company in 10 years.

Personal lines accounts include multi-peril and dwelling/fire coverage of owner-occupied single-family homes, condo units, and mobile homes. It also includes wind-only hurricane coverage.

Across the state, six of every 10 Citizens policyholders would see premiums reduced by $359 on average compared to 2025.

Still, overall rate increases are projected for four Central Florida counties.

Personal lines customers in Orange County would see rates increase by an average 1.8%, resulting in average premiums rising from $2,314 to $2,356.

Osceola County policyholders would see a 5.2% hike, sending premiums from an average $2,321 to $2,442.

In Lake County, rates would climb an average of 4.1%. Premiums would increase from an average $2,016 to $2,099.

In Brevard County, rates would jump an average of 6.5%. Average premiums would increase from $2,881 to $3,068.

Polk County customers would see an average decrease of 0.7%, reducing average premiums from $2,177 to $2,163.

Rates for Seminole County policyholders would decline by an average of 4.1%. Average premiums would decline from $2,213 to $2,122.

In contrast, the company projects that a majority of personal lines policyholders in South Florida’s tricounty region would see rates decreased by more than 11%.

In South Florida’s tricounty region, more than 70% of policyholders would see decreases. For them, rates would decline an average of 12.6% in Broward County, 11.7% in Palm Beach County and 13% in Miami-Dade County.

Citizens spokesman Michael Peltier said that the South Florida decreases stem from the reforms having “a particularly positive effect” in the region, “which historically experienced the highest rates of litigation.” Regarding the increases in Orange, Osceola, Lake and Brevard, he said that rates are “still catching up to make [them] actuarially sound” — which in insurance parlance means adequate to cover expected losses.

The overall downward trend may continue, state and insurance industry officials said.

After steadily increasing for the past decade, insurance costs for Florida policyholders, both with Citizens and private-market insurers, grew by just 0.03% between August and September, according to an analysis of state data by the South Florida Sun Sentinel.

Mark Friedlander, senior director of media relations for the insurance industry funded Insurance Information Institute, said that private market insurers could be ready to follow Citizens’ lead next year.

After the state’s insurers were collectively recognized for achieving the nation’s lowest average rate and premium increases in 2024 and 2025, Friedlander said, “We anticipate more significant rate decrease filings from Florida home insurers in 2026.”

Ron Hurtibise covers business and consumer issues for the South Florida Sun Sentinel. He can be reached by phone at 954-356-4071 or by email at rhurtibise@sunsentinel.com.