Why Your Florida Insurance Premiums Might Skyrocket This Year

Florida Insurance Rate Increases

A Big Ask from TRUE

Florida homeowners are staring down the barrel of a potential 31% increase in their property insurance premiums. Trusted Resource Underwriters Exchange (TRUE), a Florida-based insurer, has requested the hike for its multiperil homeowners’ insurance policies. If approved, tens of thousands of policyholders could see their annual premiums jump by an average of $1,357.

Why such a steep increase? Hurricanes, inflation, and reinsurance costs are the usual suspects. But TRUE’s management says they’re also playing catch-up after previous leadership failed to adjust rates to match market realities.

“This 31% increase is major,” said Yanfei Atwell, TRUE’s director of actuarial services. “It’s a catch-up for the annual rate filings we missed.”

And here’s the kicker: TRUE initially wanted to ask for a 60% increase. Yes, 60%. They scaled it back to 31% to make it more palatable for regulators.

The Litigation Problem

But there’s a bigger story here. For years, Florida homeowners have paid some of the highest property insurance premiums in the country. Why? A tidal wave of litigation.

Lawsuits over insurance claims have been blamed for driving up costs. Attorneys’ fees, often added to settlements, made these cases lucrative for lawyers but costly for insurers—and, ultimately, for policyholders.

In 2022, Florida lawmakers stepped in. They changed the rules for suing insurers, effectively removing much of the incentive for attorneys to take these cases. Attorneys’ fees can no longer be added to litigated settlements, and the number of lawsuits has plummeted.

Florida lawmakers

A Healthier Market?

The reforms are starting to show results. State officials say the drop in litigation has made Florida’s insurance market more attractive to insurers. Since the changes went into effect, 14 new insurers have entered the market, with the latest two announced on June 27.

Tim Cerio, CEO of Citizens Property Insurance Corp., Florida’s largest insurer, says the reforms have also led to lower costs for insurers. With fewer lawsuits, the cost of reinsurance—insurance that companies buy to protect themselves against catastrophic claims—has dropped.

“In 2024, Florida had the lowest average homeowner premium increase—right around 1%,” Cerio said. “That’s the lowest in the country. And as you all know, in the years before that, we were either the highest or among the highest. That is a drastic change, and it shows the health of the market. It’s tremendously significant.”

But not everyone is feeling the relief.

Frustration on the Ground

Alan Bickford, a homeowner in St. James City on Pine Island, isn’t convinced. With his home paid off, he’s considering dropping insurance altogether.

“In what country?” Bickford asked rhetorically when told about the supposed easing of costs. He’s weathered hits from hurricanes Charley and Ian, but the rising premiums are making him question whether it’s worth it.

What’s Next?Free Family Emergency Organizer PDF

TRUE’s request for a 31% rate hike is now in the hands of the Florida Office of Insurance Regulation. A hearing was held on June 17, and a decision is expected soon. If approved, it would be one of the largest rate increases in recent years.

And TRUE isn’t alone. While some insurers have lowered rates or kept them steady, others are still grappling with the financial fallout of hurricanes, inflation, and reinsurance costs.

The Bigger Picture

Florida’s property insurance market has been a rollercoaster. Between 2019 and 2022, ten insurers went insolvent. The 2022 tort law changes were supposed to stabilize the market and even bring rates down. And for some, they have.

But the reforms haven’t been a silver bullet. Lawmakers disappointed with the results tried to roll back some of the changes in the 2025 legislative session. Bills that would have reinstated certain attorney fees in litigated claims died in committee, but some lawmakers say they’ll try again.

Meanwhile, even when rates drop, premiums can still climb. Why? Inflation. When home values increase, the total cost of insuring them goes up, even if the rate itself decreases.

What Does This Mean for Homeowners?

For Florida homeowners, the future remains uncertain. Will more insurers enter the market? Will rates stabilize? Or will we see more rate hikes like TRUE’s?

One thing’s for sure: Florida’s property insurance market is still a work in progress. And for homeowners like Alan Bickford, relief can’t come soon enough.

Brace yourselves.

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