Florida Homeowners Face Continuing Insurance Premium Increases Despite Market Reforms
Recent data from the Florida Office of Insurance Regulation reveals that home insurance premiums for single-family, all-perils coverage continue to rise for most Florida policyholders despite recent insurance law reforms. Out of 90 residential property insurers in the state, two-thirds increased average premiums between January and May 2025, affecting 2.77 million homeowners, while only one-third lowered premiums, benefiting 1.37 million. While new insurers and rate reductions have introduced some pricing competition, widespread relief from ongoing premium increases remains limited after nearly a decade of rising costs.
The state-owned Citizens Property Insurance Corporation, the largest insurer in Florida, reduced its average premium cost by 1.7% but saw a significant decline in policyholders due to its strategy to encourage private insurers to assume its least risky accounts.
Private insurers typically select newer, high-value properties, leaving older, higher-risk homes within Citizens’ portfolio. Premium increases among insurers vary widely, from minimal upticks near 0.3% to a 61% increase for a small insurer. Legislative reforms passed in 2022 and 2023 aimed to reduce litigation incentives by limiting insurers’ legal fees exposure in claim disputes, contributing to stabilization in some insurer filings and market entry by over a dozen new companies. However, average premiums only dipped slightly by 0.8% in late 2024 before increasing again in early 2025. Inflationary trends in construction costs continue to pressure premium levels upward. Inflation guard clauses within policies often negate stated base rate reductions by automatically adjusting coverage limits. Regional market dynamics show South Florida experiencing increased insurer competition and some premium decreases, attributed to fewer hurricanes hitting the area recently and legal reforms reducing claims costs. Insurance agents report that while some policyholders see cost reductions by switching carriers or qualifying for discounts related to home protection measures or community features, many still face higher rates without changing insurers.
Notable new or returning insurers in South Florida include Universal Property & Casualty, Florida Peninsula, Edison, Ovation, Tower Hill, Heritage, Florida Family, Homeowners Choice, and Frontline – the latter two also writing hurricane coverage in Monroe County. The market remains complex with localized variances and selective insurer underwriting appetites influencing premium affordability and availability. Industry observers emphasize the value of shopping around due to this evolving and competitive landscape in Florida’s home insurance sector.