Florida’s Property Insurance Crisis Deepens by rampant roofing scams, causing insurers to shut down, increase rates, and exit the state. Governor Ron DeSantis declared an emergency, urging legislative action before the hurricane season. Scammers exploit homeowners through deceptive roof inspections, leading to fraudulent claims and inflated settlements. Legislative reform attempts face clashes between the industry and trial lawyers.
One of the major contributors to the crisis is the state’s vulnerability to severe weather events. Hurricanes like Ian, Idalia, and Michael have inflicted billions of dollars in damage over recent years. Each storm brings waves of insurance claims that strain the financial reserves of insurers. With the frequency and intensity of hurricanes increasing due to climate change, companies are facing immense uncertainty about future losses.
Another major factor is litigation abuse. Florida accounts for nearly 80% of all property insurance lawsuits in the United States, even though it represents only about 8% of the total number of claims. The combination of inflated repair costs, fraudulent roof claims, and exploitative legal practices has overwhelmed insurers. While some law firms and contractors exploit loopholes for profit, honest homeowners are left bearing the financial burden through higher premiums.
“Florida is the most volatile property insurance market in the country and it is on the verge of collapse.”
Despite previous measures, industry losses surpassed $1 billion in 2021, resulting in business closures and rate hikes. Citizens Property Corp. experiences a surge in policies, raising concerns about its ability to pay claims in the event of a major hurricane.
For homeowners, the situation is dire. Many families are priced out of coverage altogether, forcing them to take risky chances by going uninsured. Those who manage to secure policies often face restrictive terms, high deductibles, or non-renewal notices. The insurance crunch is also affecting the housing market, as mortgage lenders require coverage—making it harder for buyers to close deals or for homeowners to refinance.
Ultimately, Florida’s property insurance crisis is not just a financial problem—it’s a statewide emergency affecting every aspect of life. The path forward will require bold reforms, smarter climate adaptation, and a balance between protecting consumers and keeping insurers financially viable. Until then, Florida homeowners will continue navigating an increasingly fragile system, hoping for relief before the next hurricane season arrives.
Key Florida’s Property Insurance Crisis Deepens Takeaways:
State Senator Jim Boyd proposes a legislative package to curb scams, restrict advertising, and address obligations. The fate of Florida’s property market hinges on effective legislative solutions to prevent further collapses and escalating costs.
See full article here: Florida’s Property Insurance Crisis: A Slow-Motion Collapse and Urgent Legislative Battle
Florida’s property insurance market is spiraling deeper into crisis, leaving homeowners anxious and lawmakers scrambling for solutions. Once known for its sunshine and scenic coastlines, the state is now plagued by skyrocketing premiums, shrinking coverage options, and insurers abandoning the market altogether. The problem has reached a critical point, threatening not only the financial stability of homeowners but also the state’s real estate and economic future.
Over the past few years, the cost of property insurance in Florida has soared to record highs. According to industry reports, the average annual premium for homeowners is now nearly three times the national average. Several factors drive this surge—rising hurricane risks, rampant litigation, fraud, and the high cost of reinsurance. Insurers are finding it increasingly difficult to stay solvent, with many either going bankrupt or withdrawing from Florida altogether. As a result, policyholders are being pushed toward the state-backed insurer of last resort, Citizens Property Insurance Corporation, which has seen explosive growth in enrollment.