Florida’s Property Insurance Market: Stabilizing Amid Reforms
Bottom Line Up Front: Last year Florida’s property insurance market showed signs of stabilization, thanks to legislative reforms. This year there are signs that it’s effectively been fixed. For the first time since 2015, insurance companies collected more in property insurance premiums in Florida than they paid out last year. That’s a huge step forward. Here’s a closer look at the state’s recently released 2025 Property Insurance Stability Report.
Litigation Trends: Florida’s long-standing issue with excessive litigation is improving. Most recently 9.7% of nationwide homeowners’ claims originated in Florida, but a whopping 71.5% of suits did—still high, but down from a peak of 79.9%. Defense costs have dropped 18% per claim. Legal Service of Process filings saw a 25% year-over-year decrease in 2025, and Assignment of Benefits lawsuits continue to decline. As the old litigation continues to clear out of the system.
Market Share: As of 2025, the private insurance market holds 90% of homeowners’ policies and 93% of condo unit owners’ policies, with Citizens Property Insurance Corporation down to 10% and 7%, respectively. Depopulation efforts are working, with 477,821 policies assumed from Citizens in 2024 and 200,099 in the first half of 2025.
Profitability: Florida’s domestic insurers reported positive net income in 2024, a shift from years of losses. One-year loss reserve development was favorable by $170 million.
Reinsurance: Reinsurance costs dropped 2% in 2024, with 2025 data suggesting flat costs, indicating a strengthening market.
Delinquency & Examinations: No insurers face delinquency proceedings in 2025, and no market conduct exams found willful unfair trade practices related to appraisals.
Yes, premiums are still expensive, however premium renewals are now commonly dropping and as more of the problems that led to the crisis, particularly legacy litigation left in the system, works it’s way out – there's likely to be additional options and continued lower prices on the way.