Homeowners in Florida are facing renewed increases in insurance premiums despite legislative reforms enacted in 2022 aimed at reducing litigation costs for insurers. According to data released by the Florida Office of Insurance Regulation in their Residential Market Share Report, the average premium for single-family homes rose 0.3% to $3,658 in the first quarter of 2025, following a slight dip in late 2024. Condo unit owners saw their premiums increase by 0.8% to $1,729 during the same period.
Industry Perspective on Premium Increases
Mark Friedlander, senior director of media relations at the Insurance Information Institute, attributed the rise in premiums to “higher replacement costs due to inflationary impacts of construction materials and labor.” He noted that Florida’s premium increases remain relatively low compared to other hurricane-prone coastal states experiencing double-digit rate hikes.
Market Improvements and Legislative Reforms
The recent premium increases follow positive developments in Florida’s insurance market. An analysis by insurance ratings firm AM Best revealed that the market achieved its first collective underwriting profit in eight years during 2024. This improvement was attributed to tort reforms enacted in 2022 and 2023, which aimed to reduce litigation costs within the industry. The reforms have led to the emergence of 13 new private-market insurers, stabilization of reinsurance costs, and a reduction in policies held by Citizens Property Insurance Corp., the state’s insurer of last resort.
Variations in Premium Costs Among Insurers
The data showed varied impacts on different insurance companies. Premiums increased for 41 out of 61 carriers with 1,000 or more policies. The Cincinnati Insurance Co. implemented the largest increase at 45.7%, raising its average premium from $11,014 to $16,044. In contrast, 20 companies reported premium increases of less than 2%, and 17 companies saw decreases ranging from 0.2% to 9.3%. Citizens Property Insurance Corp., the state-run insurer, reduced its premiums by 1.9% to $3,283.
Relief for Condo Associations
Condo associations experienced their third consecutive quarter of relief as premiums fell by 5.3% following previous decreases of 2.5% and 3.0%. This comes after a period of significant increases averaging 103% between June 2022 and June 2024, which were partly attributed to tightening inspection and maintenance requirements.
Future Outlook and Criticism of Reforms
While insurance industry representatives point to market improvements, critics argue that the 2022 reforms have benefited insurers at the expense of policyholders. A proposed bill to reinstate requirements for insurers to pay plaintiffs’ legal fees in claims disputes passed the House but was not advanced in the Senate. As Florida homeowners continue to recover from recent hurricanes, the trend in insurance costs remains a critical issue for property owners assessing their financial risks and next steps.
