Florida’s Property Insurance Market Is Shifting Again — Here’s What Comes Next

Florida homeowners have had a stormy relationship with property insurance for nearly a decade — and not just because of hurricanes. Now, with more private insurers re‑entering the state and Citizens Property Insurance Corp. falling below 400,000 policies, major changes are finally taking shape.

To help cut through the noise, Florida Insurance Commissioner Michael Yaworsky sat down with the News Service of Florida to answer the questions on everyone’s mind. His insights paint a picture of cautious optimism — as long as lawmakers don’t shake the system too hard.

The Market Is Improving — But Consumers Don’t Feel It Yet

Despite years of chaos fueled by sky‑high litigation and storm losses, Yaworsky says Florida is finally stabilizing. Last year, Florida recorded the lowest rate increases in the nation — just 1%.

He explains that rates and premiums are not the same. Rates are regulated — premiums are driven by inflation, building costs, and replacement value. In short, even when rates fall, premiums can still rise due to the cost of rebuilding modern Florida homes.

Yaworsky adds that reforms passed in 2022 and 2023 prevented even larger increases. Without those changes, Florida could have faced 20–40% hikes like many other states.

The Shrinking of Citizens: A Healthy Sign (But Not the Goal)

Citizens Property Insurance Corp. has shrunk dramatically — from 1.4 million policies to under 400,000. While that sounds like a win, Yaworsky reminds Floridians that depopulation is a result of a healthier market, not the mission.

Citizens remains Florida’s essential insurance safety net. In 2017 and beyond, it carried enough surplus to absorb storms and litigation without triggering statewide assessments — a buffer Florida must preserve for future disruptions.

Health Insurance: A Different Kind of Storm

While property insurance is stabilizing, health insurance premiums are rising sharply — often double digits. Yaworsky attributes this largely to federal policy, but Florida is exploring ways to shield consumers without overreacting.

One notable move: capping insurer dividends when federal projections turn out inaccurate. Carriers must prove they are not profiting unfairly from rising rates.

What’s Coming in 2026: Transparency, Mitigation Credits, and AI Guardrails

The Office of Insurance Regulation aims to protect recent reforms and prevent a return to excessive litigation costs. New consumer-focused initiatives include:

• Greater transparency showing where premium dollars actually go
• Streamlined mitigation credits to help homeowners strengthen their homes
• AI oversight to ensure technology-driven savings reach consumers

After three major insurance crises since Hurricane Andrew, Yaworsky believes today’s policies can prevent a fourth — if Florida stays the course.