Florida’s Insurance Market Faces Shake-Up as Lawmakers Tackle Rising Costs

Florida’s insurance market is at a critical juncture as homeowners and drivers contend with skyrocketing premiums and policy uncertainty. Lawmakers are introducing measures to enhance transparency, reduce costs, and encourage resilience upgrades, but finding effective solutions remains complex.

In the property insurance sector, Citizens Property Insurance is increasing rates by an average of 8.6%, with non-primary residences hit hardest. Proposals like SJR 1190 seek to counteract rising costs by offering tax freezes and grants for hurricane-resistant home upgrades. Meanwhile, new legislation (SB 1656/HB 1429) aims to expose hidden insurer expenses, potentially bringing greater accountability to the industry.

On the auto side, Florida’s no-fault insurance system is under scrutiny, with proposals to replace it with a fault-based model. Supporters believe this shift could lower premiums, while critics warn of unintended market disruptions. Technology is also reshaping the industry, with AI-driven claims processing and telematics-based auto policies offering potential savings.

With severe weather and inflation compounding the crisis, Florida policyholders must stay informed and explore ways to mitigate rising costs. Whether through legislative reform, technological advancements, or strategic consumer decisions, the path forward will determine the affordability and accessibility of insurance in the state.