News is everywhere that Florida’s property insurance market is stabilizing and rates are finally dropping after a storm-filled 2017-2024 period, supercharged by the nation’s most litigious claims environment.
When Florida’s government reformed the lottery-like “one way attorney’s fees” laws in 2022 and 2023, the insurance industry noted that prices would take time to drop due to the long timeline, from seeing lower post-reform losses, to reflecting that data in rate filings, to waiting for policy renewals priced on lower rates, to mortgage escrow changes based on the new prices. Finally, lower rates are here for most residents — but some are still seeing the bottom line go up. Why?
Simply put, the “premium,” or price, of insurance is the “rate,” or cost per $1,000 of value, multiplied by the home’s replacement value. In a cruel coincidence, as rates rose due to the litigation explosion of the past decade, inflation in labor and materials dramatically raised home repair costs.
The market value of homes also rose, but that is cold comfort to homeowners who can’t use their Zestimate to pay grocery bills. More recently, rates have started to drop, but values keep rising.
Florida’s Office of Insurance Regulation compiles excellent, publicly available market data. That date shows that, since mid-2022, the average premium per $1,000 of value for owner-occupied, site-built homes rose from $4.59 to $5.15, peaking in summer 2024, then declined to $5.00 as of September 2025. Said differently, rates rose about 12%, topped out, began declining, and are now 9% higher over three-plus years. But average premiums per policy rose from $2,798 to $3,669 in summer 2024, and have kept rising to $3,748. Premiums have risen 34%! In other words, about three of every four dollars of price changes have been driven by replacement values, not insurance company rates.
It’s great to know the truth, but what can cash-strapped homeowners do about continuing price hikes?
First, shop around. The reforms have brought capital and competition back to Florida property insurance — 17 new companies have launched since 2023. Agents who told customers to stay put in the crisis now have more options, and falling rates may make for cheaper comparable coverage.
Second, check your replacement value. Ask to recompute it at renewal time, because your existing insurer often uses a simple “inflation guard” annual value increase. Homeowners rates are calibrated to “100% insurance-to-value,” meaning your home should be insured for replacement cost — no more, no less.
Third, reevaluate your risk. Ensure your insurer knows about any improvements to the roof, windows, HVAC, plumbing, and electrical systems. An improved credit score may mean a lower rate; if yours has improved, ask the insurer to run it again. Some insurers offer credits for senior citizens, veterans, secured communities, smart home devices and other risk factors your rate may not be reflecting right now.
Finally, if appropriate, share your risk. Raising your deductibles or accepting “actual cash value” roof coverage will lower premiums, but remember, this will impact your finances after a claim.
The best news is that rapid rate decreases are finally beginning to outpace replacement value inflation. The global reinsurers who back the vast majority of our storm coverage are recognizing Florida’s success and moderating their capital costs. Non-storm claims frequency has fallen dramatically as unscrupulous actors retreat from soliciting claims tailor-made for their attorney partners. Litigation rates have also fallen by half or more, as attorneys know “jackpot” fees are less often awarded under new laws. But even as the landscape improves, homeowners can get smarter about rates and premiums and exploit the new era of competition for their insurance dollar.
John W. Rollins is the CEO of Patriot Select Property and Casualty Insurance Company, a Florida homeowners insurer, and a credentialed actuary.
