Florida property insurance rates are set to rise significantly for nearly 20,000 policyholders after Trusted Resource Underwriters Exchange (TRUE) received state approval for a 31.5% rate increase. The hike, which averages $1,357 per policy, is attributed to rising hurricane coverage expenses and other market pressures. For a broader look at how Florida ranks among the most expensive states for homeowners insurance, these rising costs are part of a larger statewide trend.
TRUE Property Insurance Rate Hike Details
Trusted Resource Underwriters Exchange (TRUE), a Tampa Bay-based insurer, has been granted permission by the Florida Office of Insurance Regulation (OIR) to increase its base property insurance rates by 31.5% for both new and renewing policies. According to OIR filings, this rate adjustment is retroactive to April and will impact policyholders statewide.
The approved increase follows a June 17 public hearing, as required for any proposed rate changes exceeding 15% over the previous year. According to the official OIR documents, the average policyholder with TRUE will see their premium rise by approximately $1,357 annually.
Reasons Behind Florida Property Insurance Rate Hike
TRUE cited several factors for the substantial rate hike. According to company filings and statements during the OIR hearing, the primary driver is the escalating cost of hurricane coverage. The portion of premiums allocated to hurricane risk is increasing by 50%, while non-hurricane coverage rises by 9%.
TRUE officials stated that the insurer’s focus on the Florida market, limited risk diversification, and higher reinsurance costs also contributed to the need for a rate adjustment. During the hearing, Anthony Scavongelli, TRUE’s chief executive, explained that their analysis supported an even larger increase—nearly 60%—mainly due to hurricane and reinsurance expenses.
Market Conditions and Legislative Changes
Florida’s property insurance market has experienced volatility in recent years. From 2019 to 2023, many insurers implemented double-digit rate increases or exited the market entirely due to financial strain. However, the market has recently stabilized, with most insurers reporting only modest rate changes in 2024 and 2025. For example, Florida Peninsula Insurance recently proposed a historic rate cut for homeowners, signaling a shift for some companies despite the overall challenging environment.
Experts attribute this relative stability to legislative reforms, particularly changes to Florida’s tort laws in 2022. These reforms reduced incentives for policyholders to file lawsuits against insurers, helping to slow the pace of premium increases.
Impact on TRUE Policyholders Across Florida
The 31.5% rate hike will affect nearly 20,000 TRUE policyholders throughout Florida. According to OIR filings, the increase applies uniformly across the state, regardless of region.
TRUE is considered a mid-sized insurer, ranking around 50th among the state’s 87 active property insurance companies. The company describes itself as a “new company that is significantly growing” in its rate filing. However, recent financial challenges have affected its standing in the market.
Financial Ratings and Ownership Changes
In 2024, AM Best, a leading credit rating agency, downgraded TRUE’s financial rating. This downgrade occurred shortly after the insurer’s majority ownership shifted from American Family Insurance Group to Gallatin Point Capital, an investment firm based in Connecticut. TRUE subsequently withdrew from voluntary ratings programs.
According to insurance professionals, TRUE’s rates have been less competitive in some regions, such as South Florida, but may be more attractive for new homes on the Treasure Coast. The company faces challenges due to its Florida-only portfolio, which limits its ability to spread risk geographically. For more on how property insurance companies in Florida are seeing profits surge despite these challenges, visit our in-depth analysis.
Expert Opinions on the Rate Increase
Industry experts suggest that the approval of such a large rate hike indicates a genuine financial need. Paul Handerhan, founder of the Federal Association for Insurance Reform, stated that the OIR typically approves significant increases only when necessary to ensure an insurer can meet its obligations.
Handerhan noted, “There’s a lot of attributes and variables that go into what the (insurance) rate should be. The OIR is doing its best to keep rates down, so if the (regulators’) office approved that increase, there was a real need for it.”
Florida Homeowners Face High Premiums
Florida homeowners continue to pay some of the highest property insurance premiums in the United States. The state’s exposure to hurricanes and the need for substantial backup funds to cover catastrophic claims drive up costs for both insurers and policyholders.
While the market has calmed compared to previous years, the TRUE rate hike serves as a reminder of the ongoing challenges facing Florida’s property insurance sector. According to OIR, details may be updated as investigations and market conditions evolve.
Frequently Asked Questions About Florida Property Insurance Rate Hike
What is the recent Florida property insurance rate hike?
The Florida property insurance rate hike refers to the 31.5% increase approved for Trusted Resource Underwriters Exchange (TRUE) policyholders. This change affects nearly 20,000 customers across the state.
How much will TRUE policyholders pay after the rate increase?
According to the Florida Office of Insurance Regulation, the average TRUE policyholder will see their annual premium rise by about $1,357 due to the rate hike.
Are other Florida property insurance companies raising rates?
Most other property insurers in Florida are reporting stable or only slightly increasing rates for 2024 and 2025. TRUE’s increase is higher than the current trend for the state’s insurance market.
Can you avoid the rate hike by switching insurers?
Policyholders may look for other options, but availability and pricing depend on individual circumstances and property location. Some insurers may offer lower rates, but coverage and eligibility vary.
Where are TRUE property insurance policies available in Florida?
TRUE offers property insurance policies throughout Florida, including areas like the Treasure Coast and Tampa Bay. The recent rate hike applies to all TRUE policyholders statewide.
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