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!
Skyrocketing insurance premiums and soaring rebuilding costs are transforming communities across Southwest Florida, especially in the wake of Hurricane Ian. As longtime residents struggle to keep up with rising financial pressure, wealthier newcomers and stricter building standards are reshaping the identity of places like Fort Myers Beach. With insurance rates now driving home sales, triggering potential foreclosures, and squeezing both owners and renters, Florida’s middle-class families face a growing question: can they afford to stay in the state they love?
Florida’s insurance industry is stabilizing fast, with nearly 1.6 million policies shifting from Citizens to private insurers and litigation dropping sharply. Regulators report stronger market confidence, decreasing premiums, and renewed competition—signaling one of the healthiest periods the state has seen in years.
A Leon County judge has ordered the restart of arbitration for Citizens Property Insurance claims, directly conflicting with a previous ruling that halted the process as potentially unconstitutional. With more than 400 cases now back in motion, real estate, insurance, and mortgage professionals can expect renewed activity in claim disputes and fresh uncertainty as Florida courts clash over the legality of Citizens’ arbitration system.
The DFW market is transitioning into a new construction phase marked by a slowdown in office development, a more selective approach to industrial projects, and an evolving housing landscape shaped by affordability and population growth. Developers are recalibrating their priorities, and for real estate professionals, understanding these shifts offers a critical edge in navigating—and capitalizing on—the next phase of the metroplex’s growth.
A new federal lawsuit claims Zillow pushed homebuyers toward Zillow Home Loans by rewarding affiliated agents with valuable leads — all without proper disclosure. The suit alleges undisclosed incentives, referral quotas, and potential RESPA violations, raising major concerns about steering, fiduciary duties, and Zillow’s expanding mortgage ambitions.
The mortgage industry is evolving fast, and the lenders who come out on top will be those who innovate without uprooting what already works. By building on strong technology foundations, streamlining workflows and adopting smart automation, lenders can reduce costs, improve customer experience and stay resilient in any market cycle. This article breaks down why innovation matters now, how a stable tech ecosystem protects lenders in volatile conditions and why small, strategic steps can drive long-term transformation.
