Property Insurance: 5 Signs of an Improving Market in Florida

When will property insurance become more affordable? The uncomfortable truth is that it will take time for changes in Senate Bill 2A, which took effect last March, to work through the insurance ecosystem. However, according to the National Association of Realtors, there are signs of improvements in at least five areas.

1. Attracting new insurance capital. In 2024, the Florida Office of Insurance Regulation approved seven new property and casualty insurers to operate in Florida.
2. Reinsurance: Insurance for insurance companies. In 2022, reinsurers in Bermuda, England, and Switzerland no longer wanted Florida’s risk, and the demand for reinsurance exceeded capacity. In 2023, all property insurers who sought reinsurance were able to obtain it, potentially preventing even more carriers from going under.
3. Citizens Property Insurance Corporation ended 2023 with 1.23 million policies and over $550 billion in exposure. While this is a LOT, it’s significantly below an earlier forecast of 1.7 million policies and $675 billion in exposure.
4. Citizen’s Depopulation. In 2023, more policies were removed through depopulation (275,324) than in the combined years of 2016 to 2022 (169,227).
5. Lawsuits. In the first 10 months of 2023, Citizens filed fewer new litigated cases (17% fewer new litigated cases) than in the same period last year.

Other Areas of Progress

Florida is taking proactive measures like borrowing money through bond sales to bolster funds for the Florida Hurricane Catastrophe Fund. These funds act as a safety net for insurers, helping stabilize the insurance sector and ensuring homeowners can access coverage.

Full Story: Florida to sell bonds to strengthen hurricane catastrophe fund

Lawmakers also propose to change Citizens' Coverage to include windstorm coverage. The bill is said to be modeled after the National Flood Insurance Program (NFIP). However, instead of a federal outreach, the coverage for wind damage would be offered at a state level. A senator has yet to sponsor a version of the bill.

Full Story:  Florida Lawmaker proposes bill to help lower property insurance premiums

While the journey towards more affordable insurance rates may take time, we remain hopeful that positive changes are on the horizon. Staying informed and engaged helps us help you make the best decisions based on reliable and accurate data.

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