Heritage Insurance Holdings Inc. Received approval from the Florida Office of Insurance Regulatory to reduce the interest rate by 3.3% on Florida homeowners policies (HO3). The amendment is expected to provide financial relief to policyholders, and applies to both new and renewal policies starting August 20, 2024.

The rate reduction is due to recent legislative changes in Florida that eliminated one-way attorney fees and reduced other abusive claims practices, resulting in improved loss trends and stabilization of the reinsurance market. The changes enabled Heritage to reduce rates while maintaining or improving margins stable.

According to Heritage Insurance CEO Ernie Garateix, the approved price reduction reflects the company’s commitment to providing affordable insurance solutions.

“The approved rate reduction is a testament to our efforts in effective risk management and strategic underwriting practices, as well as the positive impact of the legislative changes made in the 2022 special session of the Florida Legislature. We are committed to providing essential homeowners insurance to our clients with Maintaining the high level of service they have come to expect from us.”

The rate adjustment is in line with industry trends where improved risk management and favorable loss ratios have resulted in lower costs for insurers and policyholders. It also reflects the company’s strong financial position and its ability to efficiently adapt to market conditions.