Florida Home Insurance Premiums Rise Slower Than Expected Thanks to Legal Reforms
Monday, July 1st, 2024 Insurance Industry Legislation & Regulation Litigation PropertyHome insurance premiums in Florida rose significantly less than projected in 2022 and 2023, thanks to legislative reforms addressing legal system abuses and lower replacement cost inflation. The Insurance Information Institute (Triple-I) found that average premiums were $3,340 in 2023, 80% less than the estimated $6,000, and $3,040 in 2022, 41% less than the estimated $4,300.
Key reforms targeting assignment of benefits, bad-faith claims, and excessive fees have led to reduced litigation costs and slowed premium increases. In 2023, the state’s defense and cost-containment expense (DCCE) ratio significantly improved, reflecting reduced legal expenses.
Furthermore, the Florida Office of Insurance Regulation (OIR) reported minimal average premium increases in 2024, with several insurers filing for rate reductions or no change. New insurers are entering the market, and the state-run Citizens Property Insurance Corp. has successfully moved many policies to private insurers, indicating a stabilizing market.
