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Florida home insurance market shows signs of ‘stabilization’

Florida home insurance market shows signs of 'stabilization'


While state lawmakers file bills for next year’s legislative session, don’t expect major reforms to the market. Though there are some ways you might be able to save.

TALLAHASSEE, Fla. — While Floridians still dish out some of the highest costs for home insurance premiums, experts and state insurance regulators are seeing signs of market stabilization, even improvement despite several hurricanes making landfall just months ago.

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“The market is improving. It is in a much better financial condition than it’s been in the last decade,” Mark Friedlander, with the Insurance Information Institute said.

Friedlander says legislative reforms made in 2022 and 2023 to wrangle frivolous lawsuits hampering the industry are starting to make a serious impact.

“Because lawsuit volume is down so much, that is a great benefit to consumers,” he said. “Looking at the rate filings this year, the average rate filing request with the Florida Office of Insurance regulation this year is 0.8% in our opinion, that’s virtually flat rates, meaning rates have stabilized.”

Some homeowners will also have more options for coverage, with new companies writing policies in Florida and the state-backed Citizens Property Insurance beginning to shed even more policyholders, now down under a million.

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“10 new companies have entered the market, existing companies have gotten healthier, meaning they are more open to business than they’ve been in past years,” Friedlander added.

That’s why experts say additional legislative reforms are unlikely as state lawmakers begin filing bills to consider in next year’s legislative session.

At the same time, many homeowners are still feeling the pinch of expensive premiums and lawmakers could look at other measures that could lower costs for individual homeowners.

Legislators could look at re-upping the popular My Safe Florida Home Program which provides matching grants for homeowners making hardening improvements.

Another proposal pitched by State Sen. Blaise Ingoglia (R- Spring Hill) would freeze local property taxes for older homes for up to 20 years, in exchange for homeowners to upgrade their properties to comply with modern building standards.

RELATED: Homeowners struggle with home insurance claims following back-to-back hurricanes

“If we can get those older homes to be more resilient, it will save local governments a lot of money, state government, the federal government, and the most important thing from the homeowners’ perspective, they will have a home that is now resilient,” Ingoglia said.

In the meantime with more companies offering coverage, experts like Friedlander say homeowners should shop around, talk with their agent and see if there are ways to bundle coverage to save on their bottom line.

News Service of Florida contributed to this report.



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