Florida Property Insurance Market Sees Positive Changes based on report
Florida Property Insurance Market Sees Positive Changes in Newest Report
By Josh Bohling, REALTOR® with LPT Realty
The Florida property insurance market is experiencing significant shifts based on a report from the Florida Office of Insurance Regulations issued this month. This report brings positive news for homeowners and buyers alike. Recent developments indicate a stabilizing market, increased competition, and declining litigation, all of which contribute to more favorable conditions for policyholders.
New Insurance Companies Enter Florida
A major highlight is the entry of ten new insurance companies into Florida’s property insurance market. This increase in competition provides homeowners with more choices and potential for better coverage options at competitive rates. More insurers in the market can lead to improved service, expanded coverage options, and, ideally, more competitive pricing for policyholders.
Citizens Property Insurance Shrinking
Citizens Property Insurance Corporation, the state-run insurer of last resort, has seen a significant reduction in its policy count. Between January and November 2024, the number of Citizens policies dropped by 428,650. This decrease signals that more homeowners are finding private-market insurance options, a positive trend indicating a healthier, more stable insurance environment.
Decline in Litigation
One of the primary drivers of high insurance rates in Florida has been excessive litigation. However, 2024 has seen a decline in lawsuits related to property insurance, according to various metrics tracked by the Office of Insurance Regulation (OIR). Lower litigation rates typically result in cost savings for insurers, which can be passed on to policyholders in the form of stable or reduced premiums.
Stable or Decreasing Rates
Another encouraging trend is the shift in rate filings. In 2024, 32 Florida insurance companies filed for zero percent rate increases, while an additional 17 insurers requested rate decreases. This is a strong indicator that the market is stabilizing, with some companies even reducing premiums—a welcome relief for Florida homeowners who have faced rising costs in previous years.
What This Means for Homeowners and Buyers
For current homeowners, these changes may bring more affordable insurance options and less uncertainty. Buyers entering the Florida market can also benefit from these positive trends, as insurance affordability is a key factor in homeownership decisions.
If you have questions about how these insurance updates impact your home-buying or selling decisions, feel free to reach out. I’m here to help you navigate the Florida real estate market with confidence!
Josh Bohling Realtor LPT Realty
Data provided by Florida Office of Insurance Regulation
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