Florida’s legislative efforts to combat legal system abuse and insurance fraud have brought much-needed stability to the state’s property and auto insurance markets. According to a recent Issues Brief from the Insurance Information Institute (Triple-I), these reforms have significantly reduced claims-related litigation, curbed premium increases, and attracted new insurers to the market.
In 2024, 40% of home insurers in Florida requested rate decreases, a major shift from previous years of skyrocketing premiums. Additionally, 11 new property insurers have entered the state, while six of the top 10 national insurers have expanded their market share. These trends indicate growing confidence in Florida’s insurance landscape.
Key Market Improvements:
- Slower Home Insurance Premium Growth: Florida’s homeowners saw an average rate filing increase of just 1% in 2024—the lowest in the U.S. More than 30 other states experienced double-digit premium hikes.
- Depopulation of Citizens Property Insurance: The state-backed insurer, which peaked at 1.4 million policies in September 2023, has reduced its policy count by nearly 40%, now covering fewer than 850,000 homes as of February 2025. This shift mitigates the risk of a “hurricane tax” due to financial shortfalls.
- Improving Auto Insurance Market: Legislative changes led to a 500% drop in auto glass claim lawsuits in 2024, enabling several national insurers to file for rate decreases in 2025.
Sean Kevelighan, CEO of Triple-I, highlighted the importance of maintaining these reforms, stating, “Floridians are now clearly seeing the benefits of a more stable and affordable insurance marketplace. To ensure these gains continue, it is critical that we do not revert to the legal system abuse of the past.”
As the Florida Legislature convenes for its 2025 session, concerns are emerging over proposed bills that could reinstate one-way attorney fees for certain claims litigation—potentially undoing the progress made in recent years. With Florida’s history of market volatility and hurricane risks, maintaining these reforms is essential to sustaining long-term stability for homeowners and policyholders alike.
If you’re considering buying or selling a home in Florida, my team and I are here to help. With years of experience in the vacation and investment home market, we provide expert guidance to ensure a smooth and successful transaction. Contact me today to discuss your real estate goals!
📞 Michelle Baydemir
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🌐 www.vacayreflorida.com