Florida Homeowners Insurance Seeing Relief
October 28, 2025
Homeowners in Florida are seeing early signs of relief after the Sunshine State enacted a series of significant property insurance reforms through key pieces of legislation in 2022, 2023 and 2024. These legislative efforts addressed the homeowners insurance market by changing how assignment of benefits, attorney fees, and claims handling are managed. Governor Ron DeSantis has aggressively worked with legislative entities to reduce frivolous lawsuits to help stabilize homeowner rates.
While overall rates may still be going up, the October 2025 reports indicate that the rate of increase in homeowners insurance appears to have slowed compared to previous annual premiums due to these proactive legislative reforms. Naturally, the state’s frequency and severity of major storms like hurricanes and flooding have long been the driving force behind Florida’s rate hikes. To date, property damages during this year’s hurricane season have been minor in comparison to recent years, which has encouraged carriers to make risk adjustments.
Nonetheless, the overall residential property insurance market across the Sunshine State remains volatile as the state’s high number of homeowner claims and lawsuits in recent years is still contributing to the state’s insurance carrier’s annual premium increases, and sometimes refusal to renew existing homeowner coverage. Insurers claim that they still face higher costs for materials, labor, and insurance claim payouts, which insurance companies pass on to policyholders. But, making strategic home improvements like a wind-resistant roof can qualify for discounts.
Actions to Take to Manage Your Premiums
Many Florida homeowners may have seen a doubling of their annual rates in 2025 due to a combination of state’s increased frequency of natural disasters, the rising costs for building materials, a rise in the cost of construction labor, and/or an increase due to your specific location’s risk profile. After all, insurers have always raised rates to cover higher claims payouts that were directly related to more severe weather events. In addition, Florida also saw inflated repair costs due to both supply chain issues and overall inflation.
So for starters, check your homeowners insurance policy to review your policy’s specific coverage and ensure the coverage still meets your unique needs, also keep an eye out for potential discounts for which you may be eligible. You can talk to an independent agent to discuss your specific rate increases and see if raising your deductible can lower your annual premiums, but remember that you will have to pay more out-of-pocket should you need to file a property damage claim. Moreover, it is important to ensure your policy meets Florida’s 80% threshold to avoid penalties.
Passage of Property Insurance Reforms
Florida enacted major homeowners insurance rate reforms in May 2022 with passage of Senate Bill 2D and Senate Bill 4D as well as December 2022 with the passage of Senate Bill 2-A and again in March 2023 with House Bill 837. More recently, Senate Bill 948 enacted mitigation grants for the My Safe Florida Home program. These legislative efforts addressed the property insurance market by making changes to assignment of benefits, attorney fees, and claim handling to reduce frivolous lawsuits and stabilize rates.
Key legislative actions and their effective dates, including:
- May 2022 (SB 2D and SB 4D): Governor DeSantis signed Senate Bills 2D and 4D into law, which clarified options for roof repairs, reduced frivolous litigation incentives, and enhanced insurer access to the Florida Hurricane Catastrophe Fund. These changes were effective immediately with the goal of stabilizing the state’s volatile homeowners insurance market. Bill 4D created a $2 billion state-funded reinsurance program (ORAP).
- December 2022 (SB 2-A): Governor DeSantis signed this bill, which included banning one-way attorney's fees, making it harder for third parties to receive a homeowner's insurance benefits without consent, requiring insurers to investigate claims more efficiently, and banning assignment of benefits (AOB) agreements effective January 1, 2023. Plus, the payment/denial period was reduced from 90 to 60 days on March 1, 2023.
- March 2023 (HB 837): Governor DeSantis signed House Bill 837 into law on March 24, 2023. This bill further curbs excessive litigation by eliminating "risk-free litigation" and the one-way attorney fee statute that was in place. It also further reformed tort laws, including establishing requirements for bad faith claims and changing the method for calculating attorney's fees, which were key measures aimed at stabilizing the market.
- October 2025 (SB 948): Although no major homeowner insurance laws were enacted during Florida’s most recent legislative session, the effective date of October 1 enacted additional consumer protection measures and updates to flood disclosure requirements to prospective tenants or buyers. The legal changes included a new bill that prohibits insurers from canceling or refusing to renew homeowner policies in the aftermath of a state of emergency as declared by the governor.
Proposals that did not pass in 2025 may be reintroduced in 2026. Examples include bills to limit rate increases and eliminate sales tax on impact-resistant doors and windows. Lawmakers did pass a bill to repeal a public records exemption and make information on insurance compensation, corporate governance and risk assessments open to the public. Plus, from Oct 2024 to Sept 2025, insurers must provide a 1.75% deduction on homeowners and flood policies, offset by state tax credits (HB 7073). Other proposals, such as restoring one-way attorney fees or imposing rate caps, were filed but did not become law.
IN CONCLUSION
Recent reforms in Florida have transformed its property insurance market, sparking significant growth and stability. Over the last few years, changes have attracted 17 new insurance companies, injecting over $574 million in policyholder surplus. As a result, Florida has more than 7.61 million homeowner insurance policies, making it one of the largest markets. Domestic property insurers reported a net income of $954 million in 2024, a substantial increase from $292 million in 2023 and a complete reversal of the $741 million loss recorded in 2022.
Since the reforms took effect, the Florida Office of Insurance Regulation has seen over 150 residential filings for rate decreases or zero percent increases. Since January 2024 alone, 33 companies have filed for rate reductions, and 46 have requested no change. Even reinsurance costs are declining, signaling growing confidence in the market's stability. The success of reforms is further highlighted by the depopulation of Citizens, the state’s insurer of last resort that reduced its exposure by over $300 billion with risk shifts back to the private market.
Governor DeSantis has also announced continued funding for the My Safe Florida Home program into 2026. This initiative provides free wind mitigation inspections and matching grants to help homeowners fortify their properties against storms, which in turn lowers their premiums. Since 2022, the program has completed over 122,000 inspections and approved 63,000 home hardening applications. To date, more than 62,000 homeowners have received grants totaling $383 million, leading to an average premium reduction of $900 last year.
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Property insurance is one of the most important issues to Floridians who have found themselves bogged down under expensive bills. Even though the American Property Casualty Insurance Association suggested rates have begun to stabilize with new private insurers entering the state, you also have rights and options as a Florida homeowner if you believe your insurance carrier has wrongfully denied or under paid your claim. Our experienced staff of independent agents can help find the home, condo or renters insurance policy that works best for you. Call 1-833-450-9490 to speak with the pros at Nsurance Nation today.
