Florida Legislature advances property insurance reforms to attract insurers, reduce litigation costs

Florida lawmakers have advanced a new package of property insurance reforms aimed at stabilizing a troubled market that has seen homeowners face continued premium increases in recent years.

The legislation includes changes to assignment-of-benefits rules, incentives for homeowners to strengthen properties against storms, and adjustments to Citizens Property Insurance Corporation's windstorm coverage. Legislators said the reforms are intended to attract more private insurers to the state and curb litigation costs that have contributed to rising premiums.

The property insurance market in Florida has faced mounting challenges, with several insurers leaving the state or restricting coverage in recent years. The new reforms represent another attempt by state officials to address market instability that has left many homeowners struggling with higher costs.

Assignment-of-benefits provisions, which allow contractors to step into a homeowner's role in insurance claims, have been a point of contention. Changes to these rules aim to reduce litigation that insurers say drives up costs across the market.

The package also includes incentives designed to encourage homeowners to fortify their properties against hurricanes and other storms that regularly threaten the state. Officials have said strengthening homes can help reduce claims and stabilize insurance costs over time.

Adjustments to Citizens Property Insurance Corporation, the state-backed insurer of last resort, focus on windstorm coverage. Citizens has grown significantly as private insurers have exited the market, raising concerns among policymakers about the state's exposure to catastrophic losses from major hurricanes.

The insurance reforms come as Gov. Ron DeSantis has signed what he has described as "well over 100" measures this year. Recent legislation includes a substantial increase to the homestead property tax exemption set to take effect in 2027 and 2028.

The state has also moved forward on other major policy changes in recent weeks. Florida has tightened SNAP eligibility rules that will take effect in 2026, reshaping safety-net access for low-income residents. The attorney general has issued criminal subpoenas to Roblox over allegations the gaming platform inadequately prevents child predators from targeting children.

The property insurance reforms mark the latest in a series of legislative efforts to address Florida's insurance crisis. Previous reform attempts have had mixed results, with premiums continuing to rise even as lawmakers sought to stabilize the market through regulatory changes.