Florida residents are still reeling from rising insurance premiums despite lawmakers passing reforms intended to stabilize the market. According to recent data from the Florida Office of Insurance Regulation, while costs dipped slightly in 2024, they’ve begun to creep up again in 2025, with the base rate for property insurance increasing by 0.3% in the first part of the year. This incremental rise belies a larger trend: since 2022, Central Florida residents have seen their insurance costs soar by nearly 40%. The typical annual premium for home insurance in Orange County now stands at around $2,600, with prices ranging from under $900 for the most basic policies to over $6,000 for comprehensive coverage.
The legislative reforms, enacted to address what was termed an insurance crisis, aimed to reduce litigation against insurance companies and attract more insurers to the state. While these changes have successfully drawn new insurance providers into the Florida market, the anticipated drop in prices has been more muted than expected. Experts suggest that the reforms are having a gradual positive effect, citing a report from the Insurance Information Institute that noted Florida had the lowest average rate filing in the country in late 2024.
However, the base rate is only one component of the overall insurance bill. Various factors influence the actual premium paid by homeowners, including construction costs, labor expenses, supply chain disruptions, and tariffs on building materials. A nationwide study found that the cost to rebuild homes increased by 55% between 2020 and 2023, with Florida being significantly affected. Insurance companies also factor in the cost of reinsurance – essentially, insurance for insurance companies – which can account for nearly half of the premium bill.
The legal environment has also played a role in driving up costs. Lawsuits over insurance claims had previously contributed to higher company expenses, which were then passed on to consumers. The recent legislative changes aimed to reduce such litigation, and while this appears to be having some effect, the benefits are not yet universally felt among policyholders.
In this evolving market, experts advise homeowners to shop around for insurance quotes as more companies enter the Florida market. Insurance agents report being able to find significantly better deals for their clients, sometimes cutting premiums in half compared to the previous year. State officials acknowledge that it will take time for the full effects of the reforms to be felt, but encourage policyholders to remain proactive by staying in touch with their agents, seeking re-quotes, and exploring home improvements that could qualify for discounts. A state program offering assistance for wind protection upgrades may also benefit some homeowners, particularly in the face of rising insurance costs.
The key takeaway for Florida homeowners is the importance of remaining vigilant and exploring all available options. Rather than assuming their current policy is the best available, residents are advised to ask questions, compare rates, and take advantage of any cost-saving measures that may be available to them.
