Florida Home Insurance Costs Show Signs of Stabilizing After Years of Increases

Florida’s home insurance market is showing signs of stabilization after years of sharp premium increases that strained affordability for homeowners and property investors across the state. Regulators say legal reforms and improved market conditions are slowing the rate of growth in insurance costs, though Florida remains one of the most expensive states for property coverage.

What the Data Shows

As of late November 2025, Florida’s Office of Insurance Regulation had received 73 filings for rate decreases and 94 filings for 0% rate increases. The average annual homeowner’s insurance premium in Florida, including wind coverage, is now $3,815. While that figure is up about 6% from a year ago, it represents a significant slowdown from the double-digit annual increases seen in prior years.

“We have seen great success in Florida’s market recently, and we hope to build on this momentum,” Florida Insurance Commissioner Michael Yaworsky said in a statement.

Some insurers have moved beyond stabilization to rate reductions. Florida Peninsula Insurance requested regulatory approval in August for a statewide average decrease of 8.4% for homeowners’ premiums and a 12% reduction for condominium owners.

Why the Market Is Improving

The shift is largely attributed to legal reforms passed by Florida lawmakers since 2022. The state overhauled its property insurance laws with measures aimed at cutting litigation costs, restricting assignments of benefits, and tightening claims timelines.

According to Gallagher Re, a global reinsurance brokerage and risk advisory firm, these changes have resulted in a significant decline in property claims lawsuits and improved loss ratios for insurers. The report found that 2024 was the first year since 2016 that Florida’s domestic property companies turned a collective profit, despite a $20 billion insurance loss from Hurricane Milton.

“The reforms have led to a more stable and attractive insurance market in Florida, encouraging carriers and reinsurers to refocus on growing their businesses or re-enter the market if they had previously pulled back,” the Gallagher Re report stated.

New Competition Entering the Market

The improved market conditions have attracted new insurers to Florida. Seventeen new insurers have entered the state, increasing competition and giving property owners more options. This influx is expected to continue driving competitive pricing as companies update their rates and terms to attract new business.

Shiloh Elliott, a spokesperson for the Office of Insurance Regulation, noted that even after Hurricanes Helene and Milton in 2024, there were no widespread, significant rate increases filed by private carriers. “Now, with a quiet 2025 hurricane season, continued decreases in reinsurance costs, and an overall increased underwriting appetite among carriers, market momentum is very much in consumers’ favor,” Elliott said.

Multiple reinsurers have also publicly expressed confidence in Florida’s market, a trend that could result in further savings being passed on to policyholders.

What This Means for Florida Property Owners

For residential and commercial property owners in Florida, the stabilization of insurance costs provides some relief after years of rapid increases. However, Florida remains one of the most expensive states for property insurance due to hurricane risk, and costs are still elevated compared to historical norms.

Real estate investors and developers should continue to account for insurance as a significant operating expense when evaluating properties. Even with stabilization, insurance premiums remain a key factor in cash flow projections and property valuations.

Property owners should review their coverage regularly and compare options among the growing number of insurers in the market. The increased competition may create opportunities to secure better rates or terms, particularly for properties that have been upgraded to meet stronger building codes.

Looking Ahead

The Florida insurance market appears to have turned a corner, but its long-term stability will depend on continued legal reforms, favorable weather conditions, and reinsurance market trends. If the state avoids major hurricanes and reinsurance costs remain manageable, the downward trend in premium growth could continue into 2026 and beyond.

For now, the data suggests that the worst of the premium increases may be behind Florida property owners.

Financial Planning for Florida Real Estate

Insurance costs are just one component of the financial picture for real estate investors and developers in Florida. From property tax planning to cost segregation studies and cash flow analysis, our team helps clients make informed decisions in a changing market.

At James Moore, we work with commercial and residential real estate professionals across Florida to address the complexities of property ownership, fund management, and tax strategy. Whether you’re managing a portfolio or planning a new development, we provide the accounting and advisory support you need to protect your investments and plan for the future.

Connect with our real estate team to discuss how we can help you address the financial challenges facing Florida property owners.

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