New Reforms, Old Problems: Florida’s Insurance Market Still on Shaky Ground
Florida’s home insurance market has always been unpredictable, but recent reforms meant to stabilize the system appear to be repeating history rather than rewriting it. With insurers exiting, premiums rising, and new companies stepping in with questionable backgrounds, many homeowners and real estate professionals are once again navigating a landscape filled with uncertainty.
The latest developments trace back to Gov. Ron DeSantis’s 2022 legislative package—described by some as a seasonal gift to the insurance industry. Similar efforts followed Hurricane Andrew decades ago, and just like then, the result has been a wave of small, lightly capitalized insurers entering a market still trembling under the weight of catastrophic risk.
In 2023, Florida began aggressively depopulating Citizens Property Insurance Corporation, the state’s insurer of last resort. Citizens is required to shift policyholders to private carriers if the premium difference is within 20 percent. For many Floridians, this meant being moved into newer, more costly policies with companies that often lacked long-term financial strength.
According to the Insurance Fairness Project, some private insurers now assuming Citizens policies have ties to previous insolvencies. One notable example is Viceroy Preferred Insurance Company, sharing board members with Monarch National—an insurer fined $325,000 for mishandling hurricane claims and linked to the now‑insolvent FedNat Insurance.
“Many of the same conditions that left homeowners exposed in the last crisis are being reproduced.” — Insurance Fairness Project
Checkered Pasts and Rating Gaps
While many new insurers have been approved to take on Citizens’ policies, several carry histories of claim denials or financial instability. Some, like Patriot Select (formerly Anchor Insurance), reentered the market after prior restructuring. Others, such as Apex, emerged from the remnants of insurers that failed in earlier decades.
Compounding the uncertainty is the influence of Demotech—Florida’s most widely used private ratings agency. Despite awarding many insurers “A” ratings, Demotech-rated companies have historically failed at much higher rates compared to major national agencies. Between 2017 and 2025, 17 insurers collapsed within a year of receiving top marks.
Homeowners Paying More for Less
New data from independent agency Weiss Ratings paints a troubling picture: 14 Florida insurers closed more than half of homeowner damage claims without payment in 2024. People’s Trust Insurance Company topped the list, denying an astonishing 75 percent of claims. Slide Insurance Company, another recent entrant, denied more than half—despite holding an “A” rating.
Slide’s leadership also raised eyebrows for multimillion-dollar executive payouts at a time when policyholders struggled. Their opulent lifestyle, including a 9,600-square-foot waterfront estate, has only intensified resentment.
Political Currents Beneath the Surface
Florida’s insurance industry has long been intertwined with state politics. Substantial donations from top executives to political committees and allegations of regulators softening findings on insurer profitability continue to raise questions about oversight and public protection.
Climate finance strategist Jordan Haedtler argues that fragmented oversight across various agencies only deepens the crisis. His team proposes consolidating insurance regulation, disaster recovery, land-use planning, and building codes into a single streamlined authority.
Calls for a True Overhaul
The Insurance Fairness Project asserts Florida must move “beyond cosmetic fixes.” Experts like Martin Weiss go further, suggesting the state may need to reconstruct its entire insurance system from scratch to restore stability and protect homeowners.
For real estate professionals, lenders, and homebuyers, insurance reforms—good or bad—shape the trajectory of Florida’s entire housing market. Understanding the shifting insurance landscape is now as essential as tracking inventory or interest rates.
That’s why institutions like Cameron Academy remain committed to helping professionals stay informed, licensed, and prepared. Whether you’re earning your first real estate certification or expanding your professional portfolio, staying educated is your strongest advantage in a rapidly evolving market.
Getting licensed or staying ahead in your career can be a journey—but it doesn’t have to be overwhelming. Grab your favorite coffee or tea, take a moment to relax, and browse through our articles. Whether you’re just starting out or renewing your expertise, we’ve got tips, insights, and advice to keep you moving forward. Here’s to your success—one sip and one step at a time!
A new national survey shows that while most real estate agents now use AI for everyday tasks like writing listing descriptions and social posts, many remain uneasy trusting the technology with higher‑stakes responsibilities. Agents report major time savings and better communication thanks to AI, but lingering concerns about accuracy, compliance and data interpretation reveal a growing skills gap. The industry’s next big need: stronger AI tools, clearer standards and hands‑on training — a gap education providers like Cameron Academy are poised to fill.
Florida homeowners and real estate professionals are being crushed by skyrocketing insurance premiums, shrinking coverage, and a claims system stacked against consumers. While residents face the highest insurance costs in the nation, meaningful reform bills are being ignored in Tallahassee, leaving families, businesses, and the entire real estate market exposed.
Artificial intelligence is exposing the real estate industry's biggest weakness: fragmented, inconsistent data scattered across disconnected systems. Unlike finance and e‑commerce, real estate never built a unified digital foundation—and now AI can’t function without one. As companies scramble to standardize information, organizations like OSCRE are pushing shared data models that could transform everything from leasing to property management. The result may be the industry’s most collaborative era yet, where clean, interoperable data becomes the key to unlocking AI’s full power.
Off‑market networks, rising small‑investor buying, regulatory shifts, and intensifying portal competition are reshaping how homes are found and sold. With inventory tight and traditional listings declining, agents who understand investor behavior, private deal flow, and evolving rules are gaining a major edge in today’s fast‑changing housing landscape.
Despite state leaders celebrating stabilization, Florida homeowners continue to face some of the highest insurance premiums in the country. Local experts say rates have stopped skyrocketing but have settled at levels that feel permanently elevated—especially for older or coastal homes. With insurers still avoiding high‑risk areas and demanding costly home upgrades, many Floridians are questioning whether this expensive reality is here to stay.
California is pushing a landmark proposal that would force insurers to offer coverage to homeowners who meet state‑approved wildfire‑mitigation standards. The new SB 1076, known as the Insurance Coverage for Fire‑Safe Homes Act, aims to stabilize the state’s distressed insurance market by guaranteeing coverage for fire‑hardened homes starting in 2028—backed by strict penalties for insurers who refuse. As supporters rally and critics warn of market strain, the bill could reshape real estate, insurance, and lending practices across wildfire‑prone regions.
