Property insurers to reduce rates

Regulators say the cost of coverage will fall up to 35 percent in local counties.

Homeowners in Southwest Florida will see property insurance rate cuts of up to 35 percent from the state insurance reform law.

Insurance companies are expected to adopt the lower rates effective June 1.

Average rate cuts will run from 21.1 percent in Sarasota, Manatee and Charlotte counties to as high as 34.5 percent in Sarasota and Manatee and 35.9 percent in Charlotte, state insurance regulators said Thursday.

The statewide average will be 23.9 percent, according to the Office of Insurance Regulation.

Source: Sarasota Herald Tribune

This is positive news for the Florida real estate market. The property tax issues will have to be addressed at some point as well. Perhaps this will help start the bottoming out process for the market. Lower property taxes, lower insurance rates and lower home prices will eventually lead to a more balanced real estate market.