Florida's 2025 Legislative Session Falls Short on Homeowners' Insurance Affordability

Florida's 2025 legislative session concluded with the passage of a $115 billion state budget, but it fell short of addressing the growing issue of affordability that is driving residents out of the state, particularly in high-cost areas like South Florida. Despite agreement on various tax relief measures such as year-round disaster-relief sales-tax cuts and an extended back-to-school sales tax holiday, these primarily benefited businesses rather than alleviating the steep increase in homeowners' insurance and housing costs. Significant reforms to the state's property insurance sector remain unfulfilled, despite past legislative attempts to curb soaring premiums by reducing litigation against insurers and recent calls for more transparency in insurance executive compensation.

The state's housing affordability crisis persists as property insurance premiums remain prohibitively high for many residents. Previous efforts to stabilize the insurance market have slowed premium growth, yet many homeowners still face financial strain. Legislative leaders expressed a commitment to hold insurance companies more accountable, underscored by planned hearings and investigations into insurance practices, including dividends paid to shareholders and affiliates amidst justified premium hikes.

Key proposals aimed at improving the insurance claims process and enhancing rate regulation did not pass, signaling a delayed legislative approach to comprehensive insurance reform. Notably, the Legislature refrained from drastic measures such as eliminating property taxes, acknowledging the potential negative impact on local government funding and public schools, suggesting a cautious stance toward broad fiscal changes. The ongoing lack of affordable homeownership options highlights the critical need for effective insurance and housing reforms in Florida to address the rising cost of living challenges.

Overall, while the 2025 Florida legislative session included various tax incentives and partial measures to support consumers and businesses, it did not deliver the substantial policy changes necessary to resolve the state's affordability issues driven largely by housing and insurance costs. The Legislature's future sessions will need to prioritize meaningful reforms in the property insurance market and housing affordability to stabilize the economic environment for residents.