FLORIDA — More insurance companies are writing new policies across Florida, and dozens have filed requests with state regulators to reduce homeowners insurance rates. Fewer homeowners are now relying on Citizens Property Insurance Corp., Florida's insurer of last resort.

State data shows Citizens Property Insurance Corp. currently insures about 3% of Florida's residential properties, a sharp decline from the roughly 20% it covered in 2023. Homeowners insured through Citizens received a statewide rate decrease that took effect on June 1.

Mark Friedlander, Senior Director of Media Relations at the Insurance Information Institute, attributed the market improvements to recent legislative reforms. "Legislative reforms aimed at reducing excessive litigation and insurance fraud have helped stabilize the market," he said. He added, "We have companies now that were sitting on the sidelines saying they're going to write policies in every part of the state." Friedlander noted that "typically, South Florida was a very challenging market."

Stand Insurance, a newer entrant, is using artificial intelligence and catastrophe modeling to identify home vulnerabilities before major damage occurs. The company, which first launched in California to address wildfire risks, is now applying its approach in Florida to reduce hurricane-related losses. CEO Dan Preston said, "We can work with homeowners and actually take a role in making the home safer." He added, "That will allow us to offer discounts that can be on the order of 20% to 40%, depending on where the home is." Discounts are available for reinforced roof attachments, such as roof clips, and for installing automatic water shutoff valves.

Despite signs of stabilization, Florida still has the highest average homeowners insurance premiums in the United States, with annual costs averaging approximately $8,000. Gabriella Crespo, a homeowner, pays about $7,000 a year. "I understand, you know, flood, wind, hazard, whatnot, but still, it's a lot of money for the benefits that we get," she said. She added that insurers previously required costly upgrades: "They were like, 'You need to change this, that, the roof, all the windows.' So everything was, 'If you don't, then it's going to be an added fee.'"

Why It Matters

The Florida homeowners insurance market experienced significant disruption beginning in 2021, when several insurers stopped writing new policies and some became insolvent. The current influx of insurers and rate-reduction filings suggests the market is stabilizing following state interventions. Citizens Property Insurance Corp., created by the Florida Legislature in 2002 as an insurer of last resort, had expanded well beyond its intended role during the crisis but is now returning to a smaller market share.