Florida regulators have approved revised insurance rates for Citizens Property Insurance Corp., with homeowners holding the most common type of policy facing an average statewide premium increase of 6.6%.

The Florida Office of Insurance Regulation reduced the rate hikes initially proposed by Citizens last year. However, Governor Ron DeSantis announced Wednesday that many Citizens policyholders in Miami-Dade and Broward counties will see premium reductions.

A 17-page order published Thursday on the Office of Insurance Regulation’s website did not specify rate changes by county but confirmed that, overall, most rates will rise when the new rates take effect on June 1.

Citizens offers multiple types of insurance policies, the most common being homeowners multi-peril coverage. The insurer had initially proposed a 13.5% statewide increase for these policies, but regulators approved a lower 6.6% hike.

For “personal residential” policies, which include coverage for mobile homes and condominiums, rates will increase by an average of 8% for primary residences and 17% for non-primary residences. The combined average increase across all personal residential policies will be 8.6%, according to the order.

Originally created as Florida’s insurer of last resort, Citizens has become the state’s largest insurer due to instability in the private market, with 941,158 policies as of last week.

State law imposes limits on Citizens’ rate hikes. In 2025, owner-occupied primary residences could see maximum increases of 14%, while non-primary residences could face hikes as high as 50%.

Citizens officials argue that the state insurer needs to raise rates because it often undercuts private carriers, discouraging policyholders from switching to the private market. Efforts to move policies away from Citizens aim to reduce financial risks associated with major hurricanes. However, homeowners in some regions say they have few alternatives, making rising insurance costs a contentious political issue.

Citizens President and CEO Tim Cerio told lawmakers this week that Citizens generally offers below-market rates due to long-standing state restrictions on rate increases.

“Insurance companies must charge an actuarially sound rate. We’re not doing that,” Cerio said. “So our customers—most of them—are getting subsidized insurance not based on economic need.”

Regulators must ensure Citizens’ rates are “actuarially sound and non-competitive,” according to the order. While most policyholders will see rate hikes, decreases are justified in some areas.

“Several territories indicate an actuarial need for rate decreases,” the order states. “If rates were adjusted solely to maintain non-competitiveness, most policyholders in those areas would see a 14% increase. To strike a balance, allowing reductions of up to 10% will provide relief to some policyholders while still meeting statutory requirements.”

During a Wednesday appearance in Miami, DeSantis said 73% of Citizens policyholders in Miami-Dade County will see premium reductions, with an average decrease of 6.3%. In Broward County, 52% of policyholders will experience reductions, averaging 4.5%.

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