Briefing: Florida's Property Insurance Market

This report provides an in-depth analysis of the challenges and reforms shaping Florida's property insurance market as we enter the 2024 hurricane season. With premiums having surged by 42.5% since 2019, the report examines the underlying factors contributing to the market's instability, including excessive litigation and significant hurricane damages that have pushed many insurance providers to insolvency or out of the state. This has led to limited competition and rising reinsurance rates, exacerbating the financial burden on homeowners and businesses.

The state-sponsored insurer of last resort, Citizens Property Insurance, now serves over one million Floridians, highlighting the failure of the private market to adequately provide for residents' needs and the potential financial risks to all taxpayers in Florida. The briefing discusses various legislative reforms aimed at stabilizing the market and reducing fraud, such as changes to the assignment of benefits and litigation thresholds, as well as the introduction of reinsurance programs designed to support insurers.

Looking forward, the report underscores the necessity of further legislative action and initiatives like home hardening programs, which can mitigate risks and reduce insurance costs. For policymakers, industry stakeholders, and Floridians affected by property insurance issues, this briefing is a crucial resource that outlines the path toward a more stable and fair insurance market. Download the full report from Florida TaxWatch today to understand the comprehensive measures being taken to address these critical challenges.