Insurance is one of the few PITIA line items that's been trending in the wrong direction for Florida investors — until now. Citizens Property Insurance just confirmed an average 8.8% rate cut for homeowners multiperil policyholders statewide in 2026. For a DSCR loan, where your qualifying ratio is driven entirely by property-level cash flow, a lower insurance line is a direct, measurable improvement — no rent increase required.
The Announcement
Per Citizens Property Insurance Corporation's official March 2026 announcement, the insurer will "reduce rates for its homeowners multiperil policyholders by an average of 8.8% in 2026," with wind-only policyholders seeing an average 5.5% reduction. Per the official press release, the new rates take effect July 1, 2026 for new policyholders, and apply to existing policies at renewal. Separately, per the Office of Florida Governor Ron DeSantis, more than 330,000 policyholders have already seen rate decreases, and Citizens' overall policy count has fallen to 395,144, roughly half of where it stood a year earlier, as more owners move back to the private market.
Why This Moves Your DSCR Ratio
DSCR is calculated as gross rental income divided by PITIA — principal, interest, taxes, insurance, and association dues where applicable. Insurance is one of the more volatile pieces of that denominator in Florida. When the insurance line drops and rent stays flat, your ratio improves automatically. On a property sitting right at a lender's minimum DSCR threshold, a meaningful premium reduction can be the difference between a marginal file and a clean approval — without touching your rent roll at all.
See how a lower premium moves your specific DSCR
Send Joe your property address, rent, and current insurance quote and we'll run the updated ratio with the 2026 rate environment factored in.
Check My DSCR Eligibility Call Joe: (941) 260-3051Where the Cuts Are Landing Hardest
Per the Governor's office announcement, county-level decreases include Broward at 14.1%, Miami-Dade at 14.0%, Palm Beach at 11.9%, and Monroe at 11.3%. These are exactly the counties where investors have felt the most insurance pressure on condo and short-term-rental cash flow in recent years — meaning the improvement is concentrated where it's needed most.
| Metric | 2026 figure |
|---|---|
| Citizens multiperil rate change | -8.8% average, statewide |
| Citizens wind-only rate change | -5.5% average, statewide |
| Broward County decrease | -14.1% |
| Miami-Dade County decrease | -14.0% |
| Palm Beach County decrease | -11.9% |
| Monroe County decrease | -11.3% |
Condo and STR Investors: Don't Stop at the Statewide Average
A statewide average is directional, not a quote. Condo buildings carry their own master policy considerations layered on top of an individual owner's policy, and short-term-rental properties often carry different coverage requirements than a standard long-term rental. If a condo is part of your target property, project-level financials still matter to underwriting — our guide to DSCR loans on Florida condos covers what that review looks at. And if you're building out your cash-flow model from scratch, see how to calculate DSCR on a Florida rental for the full PITIA breakdown.
What to Do With This Right Now
If a deal you evaluated earlier this year came up just short on DSCR because of insurance costs, it's worth re-running the numbers with a current quote rather than last year's premium. And if you're underwriting a new acquisition, get a real insurance quote for the specific property before you finalize your offer price — a statewide average doesn't replace a property-specific number, but it does tell you the direction is finally favorable.
Frequently Asked Questions
Is Citizens Property Insurance cutting rates in 2026?
Yes. Citizens is reducing homeowners multiperil rates by an average of 8.8% statewide in 2026, with wind-only policies seeing an average 5.5% reduction, effective July 1, 2026.
How does a lower insurance premium affect my DSCR ratio?
DSCR equals rental income divided by PITIA. Lowering the insurance component of PITIA while rent stays flat improves your DSCR ratio, all else equal.
Which Florida counties saw the biggest Citizens rate decreases?
Broward saw 14.1%, Miami-Dade 14.0%, Palm Beach 11.9%, and Monroe 11.3%, per the Florida Governor's office.
Does lower insurance help qualify for a DSCR loan on a marginal property?
It can. A lower insurance line reduces total PITIA, which can push a marginal property's ratio above a lender's minimum threshold — talk to Joe about your specific deal.
Sources: Citizens Property Insurance Corporation, 2026 Multiperil Rates to Drop Statewide; Citizens Property Insurance Corporation, official press release PDF; Office of Florida Governor Ron DeSantis, insurance rate relief announcement.
Run Your Numbers With Today's Insurance Environment
Whether you're refinancing an existing rental or underwriting a new acquisition, let's see what the 2026 insurance rate cuts do to your DSCR.
Check My DSCR Eligibility Call Joe: (941) 260-3051