TALLAHASSEE — Florida's property insurance market, which has been in crisis since a series of major hurricanes and litigation-driven losses began driving carriers from the state in 2021, is showing early signs of stabilization in 2026, according to a quarterly report from the Florida Office of Insurance Regulation.
The report notes that three new carriers have received certificates of authority to write property insurance in Florida since January 2026, and that Citizens Property Insurance Corporation — the state's insurer of last resort — has reduced its policy count by approximately 180,000 policies since October 2025 through its depopulation program.
Premium rates, while still significantly elevated compared to pre-crisis levels, have begun to moderate in some markets. The Florida OIR reports that average homeowners insurance premiums declined by 3.2 percent in the first quarter of 2026 compared to the same period in 2025, the first year-over-year decline since 2019.
Industry analysts attribute the improvement to several factors: legislative reforms enacted in 2022 and 2023 that limited attorney fee awards in insurance litigation, a relatively quiet 2025 hurricane season, and improved reinsurance market conditions that have reduced costs for primary carriers.
The stabilization is fragile, however. Several carriers remain in rehabilitation or have filed for insolvency, and the 2026 hurricane season forecast — which NOAA has projected as above-normal — poses a significant risk to the recovery.
For restoration contractors operating in Florida, the market stabilization is a positive development, as it reduces the risk of carrier insolvency mid-claim and may improve the speed and quality of claims handling.
