What’s Going on With Florida Homeowners Insurance? We’ve Got the Latest Info

The Florida homeowners insurance market remains challenging. Pineapple Insurance breaks it all down and what it means for you.

Recent Developments in Florida Homeowners Insurance

• Eight homeowners insurance companies were taken into receivership by the State of Florida – the most recent being United Property and Casualty in March of 2023.
• Farmers Insurance has announced that it would no longer write homeowners insurance in the state and has now informed the Florida Office of Insurance Regulation of its intention to leave the state for all personal lines (auto, home, and umbrella insurance.)
• Multiple carriers have restricted new business capacity, initiated non-renewals, and have taken some rather large rate increases to combat rising costs, principally related to litigation and inflation (labor and materials).
• Citizens, which is the state-run insurer of last resort, has Policies in force (PIF) of 1,317,174 as of June 30, 2023.
• Lastly, the forecast for the 2023 NOAA hurricane season is anticipating 12–17 total named storms in 2023, 5–9 of them could become hurricanes, of which 4 could become a major hurricane.

Florida Homeowners Insurance Reform

To combat these challenges, the Florida Legislature held a special session in December to provide meaningful reform, which the governor has signed into law. The purpose of the reforms is to:

• Stabilize the personal homeowners insurance market by allowing carriers to better estimate their future costs.
• Reduce frivolous lawsuits and unnecessary litigation, thereby reducing costs for insurance companies and, ultimately, the consumer.

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 in the past and has always found solutions.

The Future Outlook of Florida Homeowners Insurance

We strongly recommend that each of you have a flood policy. Only 1 out of 4 homes in Florida have flood insurance. Much of the damage that was caused by Hurricane Ian was attributable to floods (rising waters and storm surges), which are not covered by your homeowners insurance policy.

If you have a condo, you will need to have a standalone flood policy to cover the repairs needed for your condo unit (walls in) as well as your personal contents. When the storm is in the Gulf, it is too late to purchase as the Federal flood program has a 30-day wait period. The time to act is now.

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 contact Pineapple Insurance at 813-438-7240 or visit us at pineappleinsure.com for important reference information or to request a quote or contact. Stay safe.