Insurance April 14, 2023

What Lies Ahead for Florida Homeowners Insurance

The Florida homeowners insurance market remains challenging. And understanding all of the nuances of a complex and fluid market can make things confusing. Pineapple Insurance is here to help break things down for you.


Another Homeowners Insurance Company in Receivership

Seven homeowner insurance companies were taken into receivership by the State of Florida – the most recent being United Property and Casualty in March of 2023. Another company has announced that they will withdraw from the Florida homeowners market and will non-renew their existing policies during CY 2023 and 2024.


Those non-renewals were effective in April 2023. Multiple carriers have restricted new business capacity, initiated non-renewals, and have taken some rather substantial rate increases to combat rising costs, principally related to litigation and inflation (labor and materials).


Hurricane Ian Deals a Blow to Florida Insurance

Florida experienced multiple storms and ended the year with one of the costliest and personally devasting natural disasters in Florida’s history. Citizens, the state-run insurer of last resort, has Policies in Force (PIF) of 1,239,396 as of March 31, 2023. Citizens is on pace in 2023 to exceed its PIF highpoint of 1,482,707, which was in November 2011.


Initial 2022 FL Statutory Industry results appear to indicate a combined ratio of 114%, which simply means the industry lost 14 cents for every dollar of premium written. These results will continue to develop as more carriers complete their financial reporting.


Florida Legislature Address Homeowners Insurance

To combat these challenges, the Florida Legislature held a special session in December to provide meaningful reform, which the governor signed into law.


The purpose of the reforms is to:


  1. Stabilize the personal homeowners insurance market by allowing carriers to estimate their future costs better.


  1. Reduce frivolous lawsuits and unnecessary litigation, thereby reducing costs for insurance companies and, ultimately, the consumer.


What the Future Holds for Florida Homeowners Insurance

Unfortunately, rates are expected to continue to increase due to the cost of reinsurance, which many carriers, including Citizens, are in the negotiation process of as we speak.


While these reforms should bring about market stabilization, the next 12 to 24 months will continue to be challenging as carriers implement these changes and attorneys test the reforms. The Florida Personal Lines property insurance market has faced similar challenges and has always found solutions.


Lastly, while insurance can be considered an expense, we encourage you to also think about it as the peace of mind that it can provide to help you and your family recover in the event of a loss. We strongly recommend that each of you have a flood policy, even if your home is in an X Zone, which, while not required by your mortgage company, does not mean it is unnecessary.


Pineapple Insurance is Here to Help

If you have any questions, if we can be of assistance, or if we can review your existing coverages for your home, flood, auto, or umbrella policies, please call 813-438-7240 or visit for important reference information or to request a quote or contact.


Stay safe.