Florida Property Insurance Reforms Face Challenges Amid Rising Claim Denials

Florida's property insurance reforms enacted in 2022 aimed to reduce litigation and lower premiums but recent analysis indicates an opposite trend. According to independent ratings firm Weiss Ratings, lawsuits related to property insurance claims have increased by 4% since the reforms were passed. The surge in litigation is driven by a rise in denied claims, with nearly half of property insurance claims being rejected last year.

This trend has left many Florida homeowners financially strained as they cover costly repairs after hurricanes such as Helene and Milton. The Florida Office of Insurance Regulation has responded by fining eight insurance companies over $2 million for claim payment failures following Hurricanes Ian and Idalia. State officials assert ongoing market conduct evaluations and investigations will continue with the goal of promoting compliance and eventually lowering insurance premiums.

Concurrently, the state legislature is exploring broader financial relief measures, including potential property tax elimination, to assist homeowners facing economic pressures. These developments highlight persistent challenges in the Florida property insurance market concerning claim handling, regulatory enforcement, and affordability amid frequent natural disasters.