If you have watched your premium climb for years, you are not imagining it: Florida homeowners insurance rates rose faster and farther than almost anywhere else in the country between roughly 2019 and 2023. The good news in 2026 is that the picture has finally started to change. As an independent Florida agency, we field this question every day, so here is a plain-English explanation of why rates jumped, what state reforms actually changed, and where the market stands now.
Why Florida homeowners insurance rates climbed so fast
Two pressures drove most of the increase, and neither was simply “hurricanes.” The first was litigation. For years, Florida’s old “one-way attorney fee” rule meant that if a homeowner’s attorney prevailed against an insurer, the insurer paid the legal fees, but the rule did not work in reverse. Combined with widely abused Assignment of Benefits (AOB) agreements, this created an environment in which a small share of the country’s claims generated an outsized share of the nation’s property insurance lawsuits. Those legal costs were ultimately built into everyone’s premium.
The second pressure was reinsurance. Florida insurers, especially the smaller, state-focused carriers, buy reinsurance (essentially backup coverage) to survive a major storm. After Hurricane Ian in 2022 produced tens of billions of dollars in insured losses, reinsurers either pulled back from Florida or raised their prices sharply. When an insurer’s own cost of coverage spikes, that cost flows downhill to policyholders.
The combination proved fatal for several companies. Carriers including Gulfstream Property & Casualty (liquidated in 2021) and FedNat (declared insolvent in 2022) failed, and others stopped writing new business in the state. Fewer carriers competing for your home meant less competition holding rates down.
What SB 76 and SB 2-A changed
Florida lawmakers responded with a series of reforms. Senate Bill 76 (2021) tightened how attorney fees are awarded and adjusted Citizens eligibility. The bigger shift came in December 2022 with Senate Bill 2-A, passed in a special session. SB 2-A repealed the one-way attorney fee statute for property insurance and barred new Assignment of Benefits agreements for residential and commercial property policies issued on or after the relevant 2023 dates.
The intent was to remove the litigation incentives that were inflating claim costs. According to the Florida Office of Insurance Regulation, property insurance lawsuits, which had peaked around 2021, fell sharply through 2024 and 2025 as the reforms took hold. Lower litigation costs are a precondition for lower rates, even if the savings take time to reach your renewal.
The 2024-2026 stabilization in Florida homeowners insurance rates
By 2026, the trend has clearly turned. The Florida Office of Insurance Regulation and the Governor’s office reported in January 2026 that the state had moved into a period of rate relief, with many carriers filing for flat renewals or actual decreases rather than the steep increases of prior years. We want to be careful here: we do not quote a single “average” premium, because what you pay depends heavily on your roof, your county, and your construction; a past claim mainly affects which carriers will quote you and your claims-free discount, not the rate itself. But the direction of travel has reversed for the first time in years.
Three developments are driving the improvement:
- New carriers entering the market. State officials have reported that more than a dozen new insurance companies have entered or expanded in Florida since the reforms, bringing fresh capacity and more competition.
- Citizens depopulation. Citizens, the state-backed insurer of last resort, shrank from roughly 1.4 million policies in 2023 to under 400,000 by the end of 2025 as private carriers took policies back into the standard market.
- Rate filings turning down. Even Citizens, after years of requested increases, filed for an average statewide homeowners decrease for 2026 (regulators reviewed a reduction in the high single digits), and a number of private carriers filed for reductions as well.
If you received a Citizens takeout offer, it is worth understanding before you accept or decline. We walk through how those offers work in our guide to the Citizens takeout offer in Florida.
What this means for your premium
If your renewal climbed, here’s why Florida home insurance rates went up — and how to re-shop for a stronger carrier.
Stabilization at the market level does not guarantee a lower bill at your kitchen table. A few things still move Florida homeowners insurance rates for an individual home:
- Roof age and condition. Roof age remains one of the single biggest factors in pricing and eligibility, and a documented wind-mitigation inspection (form OIR-B1-1802) can earn credits on the windstorm portion of your premium.
- Location. A home near the coast in Tampa Bay, which absorbed record storm surge during Hurricane Helene and Hurricane Milton in 2024, will price differently than an inland property.
- Coverage choices. Your deductible, your dwelling coverage amount, and whether you carry flood coverage all change the number.
Because the market is shifting, the most valuable thing you can do is shop. With new carriers writing business again, the company that was cheapest two years ago may no longer be competitive, and a carrier that would not look at your home in 2023 may welcome it now. To understand the moving parts before you compare quotes, start with our Florida homeowners insurance guide. If you are in the Tampa Bay area, our Hillsborough County coverage pages get into local specifics.
Talk to a Florida-licensed advisor
Not sure your carrier is built to last? See our Florida home insurance financial-strength ratings guide.
Rates are stabilizing, but Florida’s market is still complex and carrier appetites change month to month. As an independent agency, Cornerstone Insurance compares 15 to 20-plus A-rated carriers, so we can put your home in front of the companies most likely to offer the best price and the right coverage, rather than steering you to a single insurer. If you want a real read on where your premium stands today, request a quote and one of our Florida-licensed advisors will walk you through your options.
