Heritage Property & Casualty Insurance Co. has received regulatory approval to reduce homeowners insurance rates in Florida by 3.3 percent starting August 20, attributing the decrease to legislative changes aimed at reducing litigation costs and stabilizing the reinsurance market.

The parent company of Heritage Property & Casualty Insurance Co. said Wednesday it has received regulatory approval to reduce homeowners insurance rates in Florida by 3.3 percent starting in August.

In a news release, Heritage Insurance Holdings pointed to changes passed by the Legislature in 2022 aimed at reducing litigation costs and to what the insurer described as “stabilization of the reinsurance market.” Reinsurance is backup coverage that plays a critical role in Florida’s property-insurance system, and higher reinsurance costs in recent years helped drive up insurance rates.

Heritage said the Florida Office of Insurance Regulation approved the 3.3 percent reduction, which will take effect Aug. 20 for new and renewal policies.

“The approved rate decrease is a testament to our efforts in effective risk management and strategic underwriting practices, as well as the favorable impact of legislative changes made in the 2022 special session of the Florida Legislature,” Ernie Garateix, Heritage’s chief executive officer, said in a prepared statement. “We are dedicated to offering our customers essential homeowners insurance while maintaining the high level of service they expect from us.”

The 2022 legislative changes came after property insurers dropped hundreds of thousands of customers and passed along hefty rate increases. The troubles in the market have led to the state’s Citizens Property Insurance Corp. becoming the largest insurer in Florida.

Heritage had 147,954 policies in Florida during the first quarter of this year, down from 172,425 policies during the same period of 2023, according to information released May 1 as part of an earnings report. Heritage also agreed recently to pay a $1 million fine after a state review found it violated claims-handling requirements following Hurricane Ian in 2022.