Florida’s property and auto insurance markets are showing signs of stabilization following recent legal reforms, with premiums flattening or declining and more insurers entering the state, according to a new report from the Insurance Information Institute. More than 185 residential rate filings over the past two years reflected either decreases or no change, even as rates continue to rise nationally. The report found that litigation tied to insurance claims has dropped sharply since reforms in 2022 and 2023 limited attorney fees and assignment of benefits practices.
“Florida consumers are experiencing tangible benefits of the state’s legal system reforms,” said Sean Kevelighan, CEO of Triple-I. “Premiums are stabilizing, competition is increasing, and homeowners and drivers are seeing real savings while insurance coverage remains readily available.” Florida once accounted for more than 72% of the nation’s homeowners claim-related litigation in 2023, despite representing only 10% of U.S. homeowners claims.
Royal Palm Beach resident Lori Lanni experienced the relief firsthand when she opened her homeowner’s insurance renewal to find it was more than $1,600 less than last year. “It’s been ages, as you know, I’ve been interviewed, it’s been increasing and increasing and then to see this, oh my God, it was like Christmas Day, yeah,” Lanni said. Another homeowner in Palm Beach Gardens saw his insurance drop from $8,300 to $6,700.
As litigation eased, insurers expanded in the state with 18 new property insurers entering the market, increasing competition and reducing reliance on Citizens Property Insurance Corp., the state-backed insurer of last resort. Citizens’ policy count has fallen by about 50% since 2024, and its policyholders are expected to see an average rate decrease of 8.7% later this year. This represents the largest rate decrease in Citizens’ 24-year history.
“We’re seeing a good amount of our clients get a reduction or a very low premium increase,” said Robert Norberg, president of Arden Insurance in Lantana. The change stems mostly from reduced litigation in the state, which is leading to more insurers and fewer rejections. Norberg said the reforms initially triggered a temporary surge in filings as plaintiffs’ attorneys rushed to file suits ahead of implementation, but the trend reversed with insurance litigation filings declining significantly through 2025.
Auto insurance trends also improved significantly across Florida. The state posted the lowest personal auto liability loss ratio in the nation in 2025, while physical damage losses declined to 49.5%, signaling a steady decline from 112.0% in 2022. Additionally, 42 personal auto insurers filed for rate decreases over the prior year, including 32 within the last six months.
Despite the improvements, new risks are emerging as Florida faces its most severe drought in more than 25 years, with hundreds of wildfires reported early in 2026, including in areas not typically prone to fire. “The rapid shift from hurricane exposure to wildfire threat underscores Florida’s dynamic and evolving risk landscape,” said Kevelighan. “Continued vigilance, sound underwriting discipline and sustained policy reforms remain essential to preserving coverage availability and affordability in one of the nation’s most complex insurance markets.”
Norberg cautioned that some homeowners will still see increases, largely due to inflation affecting replacement costs. “The modest increase is not just coming from a rate change but an increase in the replacement value of a home; the coverage goes up a little, the premium goes up a little,” Norberg said. He advised homeowners to shop around as more carriers are now quoting in the Florida market.
Florida also began tracking litigation filings through the Property Insurance Intent to Initiate Litigation system, which requires policyholders to notify insurers at least 10 days before filing suit. Legal filings involving assignment of benefits continued a pronounced downward trajectory following the 2022 and 2023 reforms that curtailed one-way attorney fees and assignment of benefits practices.
The stabilization represents a significant turnaround for Florida’s insurance market, which had experienced insurer insolvencies and voluntary market withdrawals due to escalating premium rates fueled by excessive litigation. Citizens Property Insurance now administers the lowest number of policies in over a decade due to successful depopulation efforts as private insurers return to the market.