Florida lawmakers prepare property insurance reforms for special session

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

The proposals under consideration include stricter litigation rules, expanded reinsurance support and new incentives designed to prevent insurers from leaving the state, according to legislative leaders.

Florida's property insurance market has faced mounting challenges in recent years, with multiple carriers exiting the state and policyholders experiencing dramatic premium increases. The special session represents lawmakers' latest effort to address the crisis affecting homeowners statewide.

Among the key proposals being prepared are measures to tighten rules governing insurance-related litigation. State officials said these changes aim to reduce legal costs that insurers say contribute to higher premiums for consumers.

The legislative package also includes provisions to expand reinsurance support, which provides backup coverage for insurance companies facing major losses from hurricanes and other catastrophic events. Reinsurance costs have surged in recent years, forcing many carriers to either raise rates significantly or cease writing policies in Florida.

Additional measures under discussion would offer new incentives to insurance companies to maintain their presence in the state. Details of these incentives were not immediately specified.

Gov. Ron DeSantis, a Republican, has previously made property insurance reform a priority, though specific details of his involvement in the upcoming special session were not included in information from legislative leaders.

The timing of the special session has not been announced. Special sessions are typically called to address urgent matters that cannot wait until the regular legislative session.

Florida's property insurance challenges have intensified following multiple hurricanes and increased litigation costs. The state-backed Citizens Property Insurance Corporation, intended as an insurer of last resort, has seen its policy count swell as private carriers have reduced their exposure in the state.

The proposed reforms come as Florida homeowners continue to face some of the highest property insurance premiums in the nation. Legislative leaders indicated the package aims to create a more stable market environment that would ultimately benefit policyholders through more competitive rates and increased availability of coverage.

The special session will require approval from both chambers of the Legislature before any reforms can take effect.