Florida lawmakers prepare property insurance reforms for special legislative session

Florida legislative leaders are advancing a series of property insurance reforms ahead of a special legislative session aimed at stabilizing the state's troubled insurance market and addressing rising premiums for homeowners.

The proposals under consideration include tightening litigation rules, expanding reinsurance support, and creating new incentives designed to prevent insurers from leaving the state, according to lawmakers preparing the legislation.

Florida's property insurance market has faced mounting challenges in recent years, with multiple carriers exiting the state or limiting coverage options. Homeowners across the state have experienced dramatic premium increases as insurers cite rising costs and litigation expenses.

The planned reforms represent the latest attempt by state officials to shore up the insurance market. Governor Ron DeSantis, a Republican, has made insurance reform a priority as Florida continues to grapple with affordability concerns for property owners.

Legislative leaders are focusing on litigation reforms that would tighten rules governing insurance-related lawsuits. The insurance industry has long argued that excessive litigation drives up costs for carriers, which are then passed on to policyholders through higher premiums.

The proposals also include expanding the state's reinsurance support. Reinsurance provides a backup layer of coverage that helps insurers manage risk from major catastrophes, such as hurricanes. Strengthening this support system could help stabilize carriers operating in Florida's hurricane-prone market.

Additionally, lawmakers are developing new incentives aimed at keeping insurers from abandoning the Florida market. The state has seen numerous carriers either cease writing new policies or exit the market entirely, forcing thousands of homeowners to seek coverage through Citizens Property Insurance Corporation, the state-backed insurer of last resort.

Citizens has grown substantially as private insurers have reduced their presence in Florida, raising concerns among policymakers about the state's exposure to catastrophic losses. The insurer was designed to be a temporary option for those who cannot find coverage in the private market.

The special legislative session will allow lawmakers to address the insurance crisis outside the regular legislative calendar. Details about the timing of the session and specific legislative language have not yet been announced.

The reforms come as Florida property owners continue to face some of the highest insurance rates in the nation, with coastal communities particularly affected by premium increases and coverage limitations.