Florida’s property insurance rates look to stabilize in 2025 | Real Estate

Heading into 2025, how should Florida’s homeowners feel about the property insurance market?

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According to Florida Insurance Commissioner Mike Yaworsky, “tangible results” are being delivered to the state’s consumers, while progress by the Florida Office of Insurance Regulation (OIR) has been made to stabilize and strengthen the market.

“In addition to regulating one of the most complex insurance markets in the world, our office strives to promote a stable marketplace while protecting Florida’s consumers. Going into the new year, we are pleased to report that the marketplace continues to strengthen,” he said.

According to the Florida Department of Financial Services, average homeowner premiums in Florida surged nearly 60 percent between 2019 and 2023. Since then, however, some major insurance providers have reduced coverage.

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Key measures, driven by Gov. Ron DeSantis, have included expanding home hardening programs, eliminating one-way attorney fees, and curbing frivolous lawsuits.

Yaworsky noted that the property insurance market continues to show resilience and growth:

• More than 7.55 million residential insurance policies are in force.

• The average monthly request for homeowners’ rates is 1.2 percent, compared to 14 percent just a few years ago.

• Nine new property and casualty insurers have entered Florida’s market since historic legislative reforms.

• Among the top 10 national carriers in Florida, 60% have expanded their book of business and 40 percent filed rate decreases.

In addition, the OIR’s Market Conduct Unit has intensified enforcement efforts to protect Floridians by:

• Issuing more than $2.8 million in fines in fiscal year 2023-24 — nearly seven times the total fines collected in two-thirds of 2023.

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• Finalizing more than 20 market conduct examinations and completing more than 620 investigations.

• Securing more than $8 million in monetary restitution for consumers.

One of the key elements was approving the transfer of Citizens Property Insurance Corporation policies to strengthen private market strength through the Depopulation Program, Yaworsky said.

Citizens’ portfolio now holds less than 1 million policies, with 428,000 policies transferred to private market insurers in 2024, reducing Citizens’ exposure by nearly $200 billion.

That, in turn, helped Florida domestic property companies to report $389 million in net income for the first three quarters of 2024 — up from $313 million in 2023 and reversing 2022’s $854 million net loss — and that’s despite a tumultuous hurricane season.

In late November, Florida insurers reported nearly $5.2 billion in payouts related to hurricanes Helene and Milton. The two hurricanes alone (not counting the earlier Hurricane Debby, which produced $131 million in estimated insured losses) resulted in 436,167 claims, of which 27.7% were closed without payment.

Not to be overlooked is the growth in Florida’s health insurance market (Healthcare.gov), which expanded by 35 percent in 2024, growing from 3.1 million to 4.2 million consumers. Prior to 2014, the market consisted of approximately 800,000 consumers.

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