Florida lawmakers are preparing to address the state’s ongoing insurance crisis during the 2025 legislative session with a suite of proposed bills designed to tackle rising homeowner premiums, insurer instability, and a lack of industry transparency.
For several years, Florida has been facing a challenging insurance environment, largely driven by frequent hurricanes, escalating litigation expenses, and the departure of insurance companies from the market. Citizens Property Insurance Corp., initially established as a last-resort insurer, currently holds 847,571 policies as of February 28 and continues to experience financial strain. Despite efforts to stabilize rates, the average increase in Citizens’ premiums will be 8.6 percent this year, encompassing both primary and non-primary residence accounts.
Key Proposals and Potential Impacts
A significant proposal is Senate Bill 1740, spearheaded by Republican state senator Blaise Ingoglia. This bill would require insurance companies to maintain an additional $35 million in reserves, surpassing the amount needed to cover policyholder obligations. It would also prevent executives and attorneys of failed insurance companies from holding leadership positions in other insurers if they were in a leadership role during the five years leading up to the company’s insolvency.
Senator Ingoglia commented last week, as reported by the Tampa Bay Times: “Executives at insurance companies that have previously bankrupted their companies should not be exploiting loopholes and skirting the intent of current law… Policyholders and rate payers deserve better.”
Ingoglia has also put forward an amendment to Florida’s constitution, SJR 1190, which would allow property taxes to be frozen for homeowners who implement specific resilience measures. The bill would require a two-thirds legislative approval before going to voters. Further supporting this initiative, SB 1192 would ensure the continuation of these benefits for a period of 20 years.
Another key piece of legislation, Senate Bill 1466, introduced by Republican state senator Nick DiCeglie, aims to provide additional funding to the My Safe Florida Home program. This program offers homeowners grants of up to $10,000 for home upgrades. The program has quickly exhausted its funds in recent years.
DiCeglie’s proposal mandates that five percent of sales taxes collected in hurricane-affected counties in the two months following a storm would be earmarked for this program. Additionally, under DiCeglie’s other proposal, SB 1468, the purchase of impact-resistant windows and doors would be tax-exempt for a limited time.
Addressing Transparency Within the Industry
Transparency within the insurance sector is the primary focus of Senate Bill 1656 and House Bill 1429, proposed by Republican state senators Jay Collins and would require insurers to submit a “transparency report” when requesting rate adjustments from regulators. These reports would necessitate a breakdown of various costs, including profits, litigation fees, payments to affiliates, claims, and reinsurance expenses.
In an effort to further scrutinize industry practices, SB 554, proposed by Republican state senator Don Gaetz, would require regulators to report on insurance executives’ compensation and their companies’ profits or losses. It would also provide details on the financial relationships between insurers and their affiliates with at least 10 percent common ownership. Gaetz is also trying to restore Florida’s one-way attorney fees system, which, before 2023, allowed policyholders to recover legal costs when successfully suing insurance companies.
Newsweek reached out to Senators Ingoglia, DiCeglie, Collins, and Gaetz for comment.
Reactions from Legislators and the Governor
In February, Senator Ingoglia wrote on X (formerly Twitter): “My proposal: Let’s incentivize resiliency by freezing current property taxes for 20 years for those who elevate and harden their homes. Government shouldn’t be the beneficiary of home hardening. Homeowners and premium payers should.”
Governor Ron DeSantis said in a statement in February: “For the last four years, inflation spurred by the Biden Administration, active hurricane seasons, and unchecked litigation in Florida made for an environment that caused turbulence in insurance markets and steep increases in premiums. There are a lot of factors involved in insurance rates, and Florida’s property and auto markets are challenging—but… data suggests that in 2024, Florida had the lowest average homeowners’ premium increases in the nation, and the overall market has stabilized with 11 new companies having entered the market over the past two years.”
What’s Next?
The next two months are crucial as lawmakers refine and evaluate the insurance proposals. If the constitutional amendment regarding property tax freezes is approved, it will be put before voters in 2026.
