After years of hemorrhaging insurers, Florida’s insurance market is seeing a reprieve. Four new insurers have joined the market in 2025 after eight entered last year.
Yet, despite the increase in competition, Insurify’s data scientists project a 9% increase in rates in 2025, bringing the average up to $15,460 per year.
“The continued growth in Florida’s insurance market is due in large part to the historic legislative reforms we have enacted. We must continue on this path and not turn the clock backwards,” Florida Insurance Commissioner Mike Yaworsky stated in a press release.
Florida passed insurance reform in 2022 and 2023 aimed at stemming fraud and attracting insurers back to the state.
In 2022 and 2023, the Florida Senate passed Bill 2A, which made changes to claim deadlines, payouts, and estimates, one-way attorney fees, and bad-faith litigation.
Commissioner Yaworsky credits the legislative reform for encouraging insurers to enter the market.
“We are working hard every day to recruit more insurers to our state,” he said in a press release. “Thanks to recent historic legislative reforms, Florida’s insurance market is stabilizing, and more companies are entering the market.”
So far, the new companies include:
Mangrove Property Insurance
Trident Reciprocal Exchange
Ovation Home Insurance Exchange
Manatee Insurance Exchange
Condo Owners Reciprocal Exchange
Orange Insurance Exchange
Orion180 Select Insurance Company
Orion180 Insurance Company
Mainsail Insurance Company
Tailrow Insurance Exchange
Patriot Select Property and Casualty Insurance
Apex Star Reciprocal Exchange
In total, the 12 insurers will take on $418 million in policies.
“It’s a good sign insurers are entering the market,” said Baylee Jo Cragg, a Florida resident and insurance agent with Insurify. “Many carriers decline anyone slightly near the coast because they know [high claims] will inevitably happen near the coast.”
Florida’s home insurance rates saw a 3% decrease in 2024, according to a recent Insurify report. But the state still holds the top spot for expensive premiums. Florida’s average annual premium is $14,140, and Insurify predicts it will increase by 9% to $15,460 by the end of 2025.
Florida also claims six of the top 10 most expensive cities: Hialeah, Fort Lauderdale, Miami, Hollywood, West Palm Beach, and Port St. Lucie.
“Homeowners insurance is costing way too much in Florida, causing many homeowners to remain uninsured and be devastated during the hurricane season,” Cragg stated.
The state has one of the highest rates of uninsured homes, at 18%, Realtor.com reported.
New bills in Florida’s Senate may reverse some of the 2023 litigation that targeted fraud concerns. In particular, Senate Bill 426 would reinstate attorney fees eliminated in 2022.
The bill is currently postponed indefinitely.
Severe weather risks continue to pose a threat to Florida’s home insurance market. The upcoming hurricane season probably won’t be as severe as last year’s but will still be above average, according to The Weather Company and Atmospheric G2.
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