Florida Property Insurance: Reforms, Costs, and Future Outlook

Florida has seen a decrease in property insurance claims and lawsuits after significant tort reforms by lawmakers in 2022 and 2023. Despite this, homeowners in the state still face the highest premiums in the nation.

Insurance Challenges in Florida

During the pandemic, Florida was at the center of a home insurance crisis. It accounted for 76-80 percent of all homeowners insurance lawsuits nationwide but contributed only about 7-8 percent of the country’s total insurance claims. Experts identified excessive litigation and fraud as main reasons for the exodus of private insurers from the state.

To tackle this, Florida lawmakers introduced reforms to reduce litigation appeal. Changes included establishing bad faith standards, eliminating one-way attorney fees, and banning the assignment of benefits. These changes effectively reduced lawsuits and claims.

Impact of Tort Reforms

The Property Insurance Stability Report by the Florida Office of Insurance Regulation (OIR) reveals that in 2025, Florida had less than 5 percent of national claims and just over 41 percent of homeowners lawsuits. These figures show a significant drop from 2020 when the state held 9 percent of national claims and 79 percent of lawsuits.

OIR reports that since 2024, 44 companies have requested a rate decrease and 48 companies requested a 0 percent rate change. Former Florida deputy insurance commissioner Lisa Miller praised the legislative efforts, emphasizing that they reduced excessive litigation.

Persisting High Premiums

Despite decreased litigation, premiums remain high. Data from OIR shows decreased premiums in 51 counties. On average, Florida homeowners pay $3,750, including wind coverage. However, Insurify reports a higher average of $6,060 for homes with $300,000 coverage.

The high costs are largely due to natural disaster risks. Florida experienced five hurricanes and three tropical storms since 2020, with Hurricane Ian causing significant damage. Rising global temperatures and the state’s extensive coastline increase susceptibility to such events.

National Premium Trends

Florida is not alone. Home insurance premiums nationwide have surged due to natural disasters and rebuilding costs. Insurify reports a 46 percent increase since 2021, outpacing inflation rates.

A Consumer Federation of America report indicates a 24 percent premium rise from 2021 to 2024, reaching an average of $3,303 annually. Pew Research Center found that 71 percent of U.S. homeowners noted increases in their insurance costs.

Future of Premiums and Possible Solutions

Insurify experts predict rising premiums through 2026. State regulators and lawmakers face the challenge of easing the financial burden on homeowners. Federal solutions are under consideration, including a federal reinsurance backstop and funding for home retrofits to mitigate disaster impacts.

These strategies aim to help insurers manage catastrophic risks and improve homeowners’ resilience.