Why Rising Homeowners Insurance Rates in Florida will KEEP Rising—Even After Reform–into 2026!
Florida homeowners were promised relief. After years of skyrocketing homeowners insurance premiums because of rising homeowners insurance rates in Florida, the Florida Legislature passed a series of major insurance reforms. Politicians and industry leaders assured residents that these changes would attract more insurance companies back to the state, increase competition, reduce litigation abuse, and ultimately bring premiums down.
But today—years later—most Floridians with spotless claim histories are still paying more than ever. Premiums are not decreasing. They are not stabilizing. They are soaring.
A typical 4-bedroom, 2-bath Florida home of around 1,900 square feet with no previous claims, a new roof, a current wind-mitigation inspection, and hurricane shutters still costs over $7,000 per year to insure.
And if you don’t have those updates?
Many homeowners are now being quoted $17,000–$19,000 per year for the very same size home.
So what happened? Why did the promised relief never materialize? And is the insurance crisis really about litigation—or is something else going on beneath the surface?
This article takes a deep dive into why Florida insurance rates continue to increase despite reforms, and why many believe the promises made to Florida homeowners simply did not match reality.
1. The Problem of Rising Homeowners Insurance Rates in Florida–Floridians Were Promised This Would Be Fixed!
For decades, Florida lawmakers blamed high insurance premiums on excessive litigation. They argued that homeowners, public adjusters, and attorneys were filing too many lawsuits—particularly related to roof claims—and that insurance companies were being forced to spend billions defending or settling those claims.
The narrative was simple:
“If we reduce lawsuits, insurers will lower premiums.”
So reforms were passed—again and again.
Major Reforms Enacted Since 2021
Over the past few years, Florida passed:
- Senate Bill 76 (2021) — changes to attorney-fees, timing of claims, roof reimbursement schedules. (The Florida Senate)
- House Bill 837 (2023) — further tweaks to bad-faith statutes and attorney-fee issues. (Bogin, Munns & Munns P.A.)
- Other reforms aimed at the assignment of benefits and litigation limits. (R Street Institute)
These laws:
- Limited attorney-fee structures
- Restricted assignments of benefits
- Shortened deadlines to file claims
- Created protections for insurers in litigation
The biggest change was the elimination of one-way attorney fees—the rule that required insurers to pay the homeowner’s attorney fees when the insurer wrongfully denied or underpaid a claim. (OLDER LUNDY)
Politicians assured Floridians:
“Rates will start to drop within 18 months.”
“More insurers will come back into the market.”
“Competition will drive premiums down.”
But Floridians aren’t seeing lower rates. They’re seeing the opposite.
2. Premiums Have Reached a Crisis Point
Here is the reality on the ground for actual homeowners:
- A 1,900 sq. ft. single-family home, no claims, new roof, documented wind mitigation, hurricane shutters → ~$7,000+ per year (based on your scenario).
- The same home without a new roof or wind mitigation credits → $17,000–$19,000 per year.
Let that sink in:
A family in Florida could pay more for home insurance than for property taxes and utilities combined.
In many areas, insurance premiums now rival or exceed mortgage payments.
Some homeowners are paying more for insurance in Florida than luxury homes cost to insure in California, New York, or Massachusetts—despite Florida having a median home price far below those states.
While I don’t have a citation for that exact comparison, national reports show substantial increases in Florida. For example:
- Average homeowners insurance in Florida in 2019 was ~$1,988. (WUFT)
- More recent reports show increases of ~30–40% statewide since 2022. (CF Public)
- The average premium reached $3,023 in one analysis — up 34% since Q4 2022. (Insurance Journal)
3. Why Rates Aren’t Dropping (Even After the Reforms)
Insurance companies argued that litigation was the primary driver of higher premiums.
Now lawsuits are down dramatically—by some measures over 70%—yet premiums continue to rise. (Milliman)
Why?
Reason #1: Reforms Helped Insurance Companies, Not Homeowners
The biggest reform—the end of mandatory insurer-paid attorney fees—was marketed as a tool to lower premiums.
In reality, it removed the single most powerful consumer protection homeowners had.
Before reform:
- If an insurer wrongfully denied a claim, they had to pay:
- the damages owed
- plus the homeowner’s legal fees
After reform:
- Homeowners now must pay their own attorney to sue an insurer—even if the insurer was 100 % wrong. (OLDER LUNDY)
This fundamentally changed the incentive structure.
Insurance companies now know:
“If we deny a small claim, most people will simply give up.”
Because…
Reason #2: Lawyers Won’t Take Small Claims Anymore
This is one of the most damaging, unintended (or possibly intended) consequences.
A typical lawsuit over property damage can take 1–3 years and cost tens of thousands of dollars in litigation expenses—experts, engineers, depositions, filings, investigations.
So imagine a homeowner with:
- A $12,000 pipe leak
- A $15,000 water damage claim
- A $20,000 roof leak
- A $10,000 mold claim
Before reform, attorneys could take these cases because insurers would pay attorney fees if the homeowner won.
After reform? Those same cases are economically impossible.
Most attorneys simply won’t take small claims—anything under $20,000–$25,000—because:
- Costs to litigate might be $10,000–$15,000
- That’s half the value of the entire claim
- It’s not worth it for the lawyer
- It’s not practical for the homeowner
This leaves insurers with unprecedented power to deny moderate and small claims with near-zero consequences.
The result:
Insurance companies save millions—homeowners get nothing.
And premiums don’t go down.
4. The New Reality: Homeowners Can Still Sue—But It’s Effectively Impossible
Politicians claim:
“You can still sue your insurance company.”
Technically, yes.
Practically, not really.
Now, if your insurer wrongly refuses to pay a $15,000 claim, your options are:
- Pay tens of thousands to fight for years, only to end up recovering maybe half of your damages after fees and costs
- Walk away and eat the loss
- Call Florida Allstar Public Adjusting. (FAPA, inc) We may be able to help you. No cost to discuss!
Most homeowners understandably walk away. We don’t recommend walking away until you speak with a qualified public adjuster.
Insurance companies know that you have few options.
Some would say the new laws allow insurers to:
“Deny now, worry later—because most people won’t push back.”
This power shift is a major reason premiums continue rising. Less accountability means:
- More denied claims
- Less payout
- Higher profits
- No pressure to reduce rates
5. The Claim That “Competition Will Lower Rates” Never Materialised
One of the biggest promises of the reform was:
“More insurers would enter the Florida market, increasing competition and lowering premiums.”
But this hasn’t happened at any meaningful scale.
Why Companies Are Not Rushing into Florida
Florida still has:
- The highest catastrophe risk in the nation
- The most exposure to hurricanes
- Extremely high reinsurance costs
- A track record of insurer insolvencies
Even with reduced litigation, Florida is still a high-risk state with volatile weather and expensive reinsurance.
So while a few smaller companies have entered the market, they are:
- Small
- Under-capitalised
- Selective about who they insure
- Still charging extremely high rates
Competition is not increasing enough to lower premiums—and the companies that are entering are not pricing policies as low as Floridians were led to believe.
6. The Truth Many Floridians Suspect: The Insurance Lobby Won
Floridians are increasingly expressing frustration that the reforms feel one-sided. Many believe the powerful insurance lobby used “lawsuit abuse” as a scapegoat to secure favourable legal changes.
And now that they have what they wanted—lower liability, fewer lawsuits, reduced exposure—they are:
- Raising rates anyway
- Securing higher profits
- Paying executives million-dollar salaries
- Reducing claim payouts
- Leaving homeowners with fewer protections
If litigation was really the main problem, the dramatic drop in lawsuits should have produced at least some premium relief.
It didn’t.
7. The Real Cost to Homeowners: A System Tilted Against Them
The new system makes it extremely difficult for homeowners to get fairly paid on smaller claims.
Imagine this common scenario:
A homeowner discovers a leak and gets an estimate for $18,000 in water damage.
The insurance company responds:
“We’re denying your claim. It’s wear and tear.”
—or—
“We’re only paying $4,000.”
Under the old system:
- A lawyer could fight the denial
- The insurer would pay the lawyer if the homeowner won
- The homeowner could recover the full amount owed
Under the new system:
- Lawyers won’t take the case (too small)
- The homeowner can’t afford to fight it
- The insurer often pays nothing
The homeowner loses.
And insurers save money—money that was supposed to translate into lower premiums.
Instead, premiums have increased.
8. Why Premiums Are Still Going Up: Factors No One Talks About
Although the legal changes heavily favour insurance companies, there are additional issues contributing to high rates:
A. Reinsurance Costs Are Exploding
Reinsurance—insurance for insurance companies—keeps increasing. Global reinsurers raise prices every year due to:
- Increased hurricane frequency
- Climate risk
- Inflation
- Higher cost of materials
These costs get passed directly to policyholders.
B. Florida’s Rapid Population Growth
More homes = more exposure = more potential claims.
C. Higher Reconstruction Costs
Labor and materials in Florida have skyrocketed. What cost $400,000 to rebuild five years ago may cost $600,000 today.
D. Insurer Insolvencies
Dozens of Florida carriers have gone bankrupt in the last decade. Each failure increases assessments on other insurers, driving up premiums. (National Association of REALTORS®)
E. Lack of Transparency
Insurance companies do not have to prove to the public that their rates reflect real risk or reduced litigation exposure.
9. Why the Promises Feel Misleading to Many Floridians
Politicians and insurers said rates would drop:
- “Soon”
- “Within 18 months”
- “Once reforms take effect”
- “After litigation goes down”
- “As more insurers enter the market”
None of that happened.
Instead:
- Rates went up
- Claims became harder to fight
- Insurers gained legal advantages
- Homeowners lost rights
- Attorney options shrank
- Competition barely improved
To many Floridians, it feels like the state was sold a bill of goods.
The narrative of “litigation is the problem” led to reforms that did little to help homeowners—and a lot to help insurers.
10. What Homeowners Can Do Now
While the system is deeply flawed, homeowners can still take steps to lower risk and potentially save money:
- Keep your home fully wind-mitigated
- New roof (or certified remaining life)
- Hurricane shutters
- Proper roof tie-downs
- Updated wind-mitigation inspection
- Shop around every year
Even small new carriers may offer lower rates initially. - Use a public adjuster first
Before giving up on a claim, let a licensed public adjuster assess damages and evaluate the insurer’s position. - Document everything
Photos, videos, receipts, contractor reports—evidence is crucial. - Maintain your home
Insurers love to cite “wear and tear,” poor maintenance, or pre-existing damage when denying claims.
11. The Bottom Line: Florida Homeowners Deserve the Truth
The rising cost of homeowners insurance in Florida is not a mystery.
It is a combination of:
- Market forces
- Reinsurance costs
- Weather risks
- Insurer insolvencies
- Inflation
- A legal system now heavily weighted in favour of insurance companies
But the biggest issue is simple:
The reforms were sold as homeowner-friendly, but have overwhelmingly benefited insurers.
Floridians were told premiums would drop. They didn’t.
Floridians were told more insurers would enter the market. Very few did.
Floridians were told litigation was the main problem. Litigation decreased dramatically—yet rates still increased.
Floridians were told the system would become “fairer.” In reality, it became harder for homeowners to challenge wrongful denials.
This isn’t a political issue—it’s a consumer-protection issue.
A functional insurance system protects its customers.
Florida’s system increasingly protects the insurers.
Until lawmakers focus on reforms that genuinely support homeowners—transparency requirements, reinsurance relief, and restored consumer rights—Floridians will continue facing some of the highest, most unaffordable insurance premiums in the United States.
