Florida Homeowners Insurance Market Stabilizes with New Insurers and Legislative Reforms

Florida's residential casualty insurance sector is showing signs of recovery following significant losses related to Hurricane Ian in 2022, with domestic property companies posting $944 million in net income by year-end 2024, a substantial increase from prior years.

This turnaround is supported by historic legislative reforms aimed at reducing litigation-driven costs, including the elimination of the one-way attorney fee statute and assignment of benefits abuses. The Florida Office of Insurance Regulation reports increased market stability, highlighted by the entry of 14 new insurers and recent approvals of companies like Incline National Insurance Co. and Florida Insurance and Reinsurance Co., which are diversifying coverage options for homeowners and commercial properties.

Despite advancements, challenges remain for owners of older properties, as insurers prefer newer homes to manage risk, often requiring updates like roof replacements as a condition for coverage. Market competitiveness is improving, with many insurers requesting rate decreases or maintaining stable rates, contributing to Florida experiencing the lowest homeowners insurance rate increases nationwide in 2024.

The regulatory environment also adeptly managed the runoff and market re-entry of companies such as Anchor Property and Casualty Insurance Company, now operating as Patriot Select Insurance Co., aiming to sustain and grow policyholder services. Overall, these developments reflect ongoing efforts to balance industry solvency, regulatory compliance, and consumer access to insurance amid Florida’s unique risk landscape.