Florida's Property Insurance Market Flourishes Post-Reforms

Florida's property insurance market has seen significant stabilization and improvement thanks to substantial legal system abuse reforms. These changes, enacted two years ago, have led to reduced litigation, attracting more insurers into the market and driving down insurance rates. A state-commissioned survey reveals that a majority of Floridians support these reforms, with 77% agreeing that the legislative measures were necessary to stabilize the market.

The reforms have also shown tangible results in homeowners and auto insurance rates. Florida recorded the lowest average statewide homeowners rate increase in the nation in 2024, with new figures showing a tremendous drop in the number of lawsuits related to auto glass repairs—a major expense driver in previous years. Despite challenges such as high repair costs and hurricane risks, the market exhibits positive trends: 19 companies have filed for rate decreases, and litigation has significantly decreased.

However, the future of these reforms hangs in the balance as new legislative proposals threaten to reverse this progress. These include bills that could potentially increase litigation by reinstating one-way attorney fees. This legislative battle unfolds as the Florida Office of Insurance Regulation (OIR) continues to play a critical role in overseeing the market, ensuring that insurers fulfill their obligations, especially after natural disasters. Nearly three-quarters of Floridians who recently filed claims report satisfaction with their insurance experience, underscoring a generally positive trend amidst ongoing regulatory debates.