Three Years Later: Has Florida’s Legislative Reform on Insurance Helped Residents?
Starting in 2022, Florida passed sweeping insurance reforms aimed at stabilizing a market plagued by rising premiums, insurer exits, and endless litigation. But what has really changed for residents? Have these reforms made life easier—or are homeowners still facing challenges?
1. Auto Insurance – A Win for Drivers
Let’s start with the good news. Florida drivers are seeing relief at last: the state’s top carriers are reporting an average 6.5% decrease in auto premiums in 2025. After years of steady hikes, this is welcome progress.
2. Home Insurance – A Mixed Bag
For homeowners, the results are less clear:
- Some insurers have re-entered the Florida market.
- Citizens, the state-backed insurer, is lowering some premiums.
- Average requested rate hikes fell from 21% in 2023 to just 0.2% in 2025.
But—nearly half of all homeowners claims in 2024 were denied or closed without payment, the highest denial rate in almost a decade. Lawsuits haven’t disappeared either—many homeowners are still fighting back despite new restrictions.
3. Claims Denials: What’s Going On?
Insurers are denying more claims than before, and here’s why:
- Tighter Deadlines – New legislation shortened the filing window, so late claims are rejected outright.
- Stricter Inspections – Drones and advanced tech are catching roof issues, landscaping risks, or maintenance problems that insurers use to limit coverage.
- Financial Pressures – After years of hurricane losses, insurers are more cautious about payouts.
- Fraud Prevention – The reforms aimed to weed out inflated or fraudulent claims. While this protects the system from abuse, it also means legitimate homeowners face more scrutiny and paperwork to prove their case.
4. Looking Ahead: 2025 Legislation and Rate Oversight
Florida lawmakers aren’t finished with insurance reform. New 2025 legislation gives regulators additional power to oversee and review insurance rates, aiming to create more transparency and prevent carriers from pushing through sharp increases without scrutiny.
This shift could mean:
- More stable pricing for residents, with fewer sudden jumps in premiums.
- Stronger accountability for carriers who seek double-digit increases.
- Potential long-term relief, as rate oversight creates a more predictable insurance environment.
It’s not an overnight solution—markets take time to stabilize—but the intent is clear: protect consumers from runaway premiums while still keeping insurers active in Florida.
5. How Homeowners Can Protect Themselves
- Stay Organized – Document your property with photos and receipts before and after storms.
- Know the Timeline – File claims quickly to avoid automatic denials.
- Shop Around – With new insurers entering the market, options may be better than you think.
- Work with Advisors – Independent agencies like Norton Insurance of Florida can guide you through coverage choices and help position claims correctly.
Three years after reform, Florida residents are seeing mixed results. Auto insurance is finally trending down, but homeowners are still navigating high denial rates and complex rules. The good news? With 2025’s new rate oversight, there may be meaningful relief on the horizon.
Call Norton Insurance of Florida today—let us help you find the right coverage and protect your home, family, and peace of mind.
850-244-1574