DeSantis Signs Property Insurance Overhaul Targeting Rising Premiums, Insurer Failures

Gov. Ron DeSantis signed sweeping property insurance legislation aimed at stabilizing Florida's troubled insurance market by tightening lawsuit restrictions and expanding the state's insurer of last resort, though consumer advocates warn the changes may weaken protections for policyholders.

The wide-ranging bill targets assignment of benefits practices, limits certain lawsuits against insurance companies, and expands Citizens Property Insurance Corp., the state-backed insurer. State officials said the reforms are designed to curb rising premiums and prevent additional insurer insolvencies that have plagued Florida's property insurance market.

Assignment of benefits, a practice that allows contractors to step into a homeowner's policy rights and pursue claims directly, has been a contentious issue in Florida insurance disputes. The new law imposes stricter rules on these agreements.

The legislation also places new limits on lawsuits against insurers, a provision supporters say will reduce litigation costs that have driven up premiums across the state. However, critics warn these restrictions may reduce consumer protections in the short term.

The measure expands Citizens Property Insurance Corp., which serves as Florida's insurer of last resort for property owners who cannot obtain coverage in the private market. The state-backed corporation has grown substantially as private insurers have exited Florida or restricted their exposure to hurricane risk.

Florida's property insurance market has faced mounting pressure in recent years as multiple carriers have become insolvent or withdrawn from the state. Homeowners have experienced sharp premium increases, with some seeing their costs double or triple in a short period.

The insurance reform represents one of more than 100 measures DeSantis has signed this year as part of an active legislative session. Other major initiatives include legislation to substantially increase the homestead property tax exemption starting in 2027 and 2028.

State officials have also advanced policy changes tightening SNAP eligibility rules set to take effect in 2026, reshaping safety-net access for low-income residents.

On the enforcement front, Florida's attorney general issued criminal subpoenas to Roblox over allegations the gaming platform has not adequately prevented child predators from targeting children, escalating a high-profile investigation into tech platform safety.

The property insurance overhaul takes effect as Florida property owners head into another hurricane season with an insurance market still recovering from years of instability and carrier exits.