Florida homeowners have been waiting years for relief from rising property insurance costs — and at long last, rate reductions are finally appearing. After a turbulent 2017–2024 era filled with hurricanes, legal chaos, and skyrocketing claim costs, legislative reforms passed in 2022 and 2023 have helped stabilize the market. Yet many homeowners are stunned to find their latest bill is still higher. If rates are down, why aren’t premiums following?
A recent Sun Sentinel opinion column by John W. Rollins, CEO of Patriot Select Property & Casualty Insurance Company, explains the hidden math behind this contradiction — and reveals what homeowners can actually do about it.
The Real Reason Premiums Keep Rising
Insurance premiums rely on two components: the rate (cost per $1,000 of replacement value) and the replacement value of the home. While rates soared during the height of Florida’s litigation surge, inflation simultaneously drove construction costs to record highs. Even now, as rates begin to fall, the replacement value continues to climb — and that value is what drives most of the final bill.
Florida’s Office of Insurance Regulation shows that the average premium per $1,000 of value rose from $4.59 in mid‑2022 to $5.15 in 2024, before easing to $5.00 in late 2025 — only a 9% increase over three years. Yet average total premiums jumped a staggering 34%, from $2,798 to $3,748.
Quick Insight: Nearly 75% of premium increases come from rising replacement values, not higher insurance rates.
So What Can Homeowners Do?
The good news? Homeowners have more control — and more options — than they might think.
1. Shop Around — Competition Is Back
Seventeen new insurers have joined Florida’s market since 2023, giving agents fresh options and homeowners renewed negotiating power. Falling rates mean potential savings for identical coverage.
2. Recalculate Your Replacement Value
Most companies rely on automated “inflation guard” adjustments, which may overshoot reality. Requesting a fresh valuation at renewal could prevent an unnecessary premium spike.
3. Reevaluate Your Risk
Improvements like updated roofs, new plumbing, hurricane‑resistant windows, or even a stronger credit score can meaningfully lower premiums. Discounts for seniors, veterans, smart home devices, and secure communities often go unused simply because insurers aren’t informed.
4. Consider Sharing More Risk
Choosing higher deductibles or opting for an “actual cash value” roof policy can reduce premiums significantly — just weigh the tradeoffs carefully after a claim.
A Turning Point for Florida
The broader industry outlook is increasingly optimistic. Reinsurance costs are falling. Litigation and fraudulent claims have plummeted. Market conditions are stabilizing. And for the first time in years, insurers are returning to Florida with confidence.
For real estate, mortgage, and insurance professionals, understanding these shifts is essential. At Cameron Academy, we help both new and seasoned professionals stay ahead of market changes that influence Florida’s property landscape. Whether you’re earning a real estate license, expanding into insurance, or deepening your industry expertise, staying educated gives you a major advantage in a transforming marketplace.
To dive deeper into Florida’s insurance data and analysis, read the full opinion piece by John W. Rollins at the Sun Sentinel website.
More Articles
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!
Artificial intelligence has shifted from futuristic idea to everyday assistant for real estate professionals. Instead of replacing agents, AI now enhances their workflows—automating repetitive tasks, improving communication, strengthening branding, and turning complex market data into clear insights. From smarter CRMs to AI-powered marketing tools, today’s agents can focus more on relationships and client service while technology handles the busywork behind the scenes.
A Florida House committee is advancing a bill that would crack down on insurers shifting profits to affiliated companies — a practice highlighted by recent investigative reporting. With premiums soaring and options shrinking, the proposed oversight could reshape the state’s insurance landscape and create ripple effects across the real estate market, impacting buyers, agents, and investors statewide.
Proptech podcast *Tangent* marks its 100th episode with an inside look at Airbnb’s evolving role in multifamily housing. Featuring Airbnb Real Estate Marketing Leader Eliza Lochner, the episode explores the rapid growth of Airbnb‑friendly apartments, the rise of flexible‑living models, and why renters and property owners are increasingly embracing hosting as a way to balance affordability, transparency, and control. For today’s real estate professionals—especially in fast‑changing markets like Florida—the conversation highlights major shifts in tenant expectations, property management strategies, and the intersection of technology, hospitality, and residential development.
A Tampa Heights homeowner has joined the growing wave of Floridians dropping property insurance altogether after his 2026 renewal skyrocketed to $14,523. With up to 20% of residents now going bare, experts warn that soaring rates, shrinking coverage options, and post‑storm losses are pushing many to take risky measures — even as alternatives like liability‑only plans, dropped wind coverage, or home‑hardening upgrades may offer relief.
A major ERAS overhaul is coming in 2027, replacing the familiar “publications” field with a more rigorous category called “scholarly works.” Only peer‑reviewed submissions—such as manuscripts, abstracts, book chapters, and presentations—will qualify, shifting greater emphasis toward high‑quality research. While the change aims to give residency directors clearer insight into applicants’ academic contributions, many students worry that advocacy and policy work may lose visibility. As programs lean more heavily on research output in a post–Step 1 pass/fail era, future applicants will need to showcase not just what they’ve produced, but the depth and meaning behind it.
Mortgage rates have ticked back up to 6.25% after a brief dip, signaling a return to stability in the housing market. With rising inventory, moderating prices, and forecasts calling for steady rates through 2026, real estate and finance professionals can expect a more predictable environment ahead. This shift opens the door to smoother transactions, improved buyer confidence, and stronger opportunities for career growth across mortgage, real estate, insurance, and related fields.
