The Florida Home Insurance Crisis

The Sunshine State saw a dark cloud over its home insurance sector intensify in 2023, and the Florida Home Insurance crisis continues to affect many homeowners even as parts of the market show signs of stabilization. A critical situation has been brewing in Florida’s property insurance market for years, manifesting through a series of troubling developments. A number of insurance companies have retreated from Florida, discontinued business operations, or chosen not to renew certain policies, particularly in areas deemed high-risk. This exodus helped set off a domino effect, contributing to sharp policy-rate increases and casting a shadow of uncertainty over the future of the Florida home insurance market.

Many experts on the subject capture the severity of the situation, pointing out that this is far from an isolated issue—it has affected tens of thousands of homeowners across the state, even as some recent market indicators have improved.

Despite the challenging circumstances, several insurers, including large national brands and regional carriers, have maintained some presence in the market. Yet, the trend of insurers backing away was unmistakable and troubling during the height of the crisis, with companies such as Farmers and AAA announcing pullbacks, nonrenewals, or restrictions on certain policies due to heightened risk concerns.

This crisis has prompted in-depth investigations by financial experts and industry observers alike. The insurance research team at CitizensInsurance.net has reviewed the systemic issues affecting the Florida insurance industry, providing practical insights and guidance for homeowners who might find themselves on the receiving end of a cancellation or nonrenewal notice. In this article, we will explore the intricacies of the Florida property insurance crisis, discuss the legislative efforts that followed, and provide actionable advice for homeowners navigating this turbulent landscape.

Independent information note: CitizensInsurance.net is an independent insurance information and comparison website. It is not Citizens Property Insurance Corporation, Louisiana Citizens, Citizens Insurance Company of America, Hanover Insurance, an official claims portal, or a government agency.

Characterizing the Florida Home Insurance Market

As Florida homeowners faced sharply rising insurance premiums during the 2023 crisis period, the underlying factors contributing to the state’s difficult home insurance landscape were multifaceted. In 2025 and 2026, some market indicators improved, but Florida remains a challenging and expensive state for property insurance. ^[1]

Vulnerability to Natural Disasters: A Geographic Challenge

Florida’s picturesque 1,350 miles of coastline may be perfect for postcards and vacations, but it also places a large share of its population in the path of hurricanes, storm surge, and flooding. The state’s flat topography and limestone bedrock only exacerbate this risk, creating a unique challenge for homeowners and insurers alike.

The Ripple Effects of Inflation and Supply Chain Woes

The national economic climate has not spared the home insurance sector. Inflation increased the cost of labor and building materials, making repairs or rebuilding more expensive after storms, water losses, and other property damage. As these costs climb, insurance companies often pass at least part of the expense onto policyholders through increased rates.

A Shrinking Pool of Insurance Providers

A significant shift occurred around 2005 when major insurance providers began reducing their exposure in Florida, leading to a marked reduction in carrier options for some homeowners. This retreat opened the market to smaller, regional insurers, but it also created a supply-and-demand imbalance. With fewer companies willing to insure certain properties, insurance costs often climbed, compounding the financial burden on homeowners.

The Vicious Insurance Circle

In an unfortunate dilemma, those in moderate- to high-risk areas, or homeowners with a history of prior claims, can find themselves in a precarious position, sometimes deemed too risky to insure under a carrier’s current guidelines. Even homeowners who have maintained long-standing relationships with insurance firms have received nonrenewal notices when companies revise underwriting criteria, reduce exposure, or exit parts of the Florida market to limit financial risk.

For many Floridians, the dream of owning a home in the Sunshine State is shadowed by the practical realities of insuring and protecting that investment.

In essence, Florida’s home insurance market is a complex web of geographic destiny, economic trends, and industry dynamics. As the situation continues to evolve, stakeholders continue seeking solutions to safeguard the homes and lives of those who reside in this hurricane-prone paradise.

Timeline of Events Leading Up to the Florida Home Insurance Crisis

The crisis in Florida’s home insurance market has been unfolding over several years, marked by a series of significant developments. The timeline below preserves the major events that shaped the crisis while adding context that parts of the market have shown signs of stabilization after 2023:

• 2017 to 2023: This period saw the liquidation of eleven property and casualty companies in Florida. Notably, five of these companies liquidated in 2022, and United Property & Casualty Insurance Company followed in 2023.
• 2022: The situation escalated with multiple major events:
  • In June, Southern Fidelity was ordered into liquidation, impacting around 80,000 homeowners.
  • In early August, Weston Property & Casualty Insurance was placed into receivership, leading to the cancellation of all policies by September 7.
  • In late August, United Insurance Holdings Corp. (UPC) announced plans to exit the Florida market, affecting over 200,000 policies.
  • On September 23, FedNat entered insolvency just before Hurricane Ian, after already reducing its business in the state.
• 2023: In July, Farmers Insurance announced that it would stop writing Farmers-branded auto, home, and umbrella policies in Florida, affecting about 100,000 policyholders, while some affiliated or subsidiary operations continued in the state.
• 2024 to 2026: Market conditions began showing signs of improvement in some areas, including lower Citizens policy counts, private-market depopulation activity, and approved Citizens rate decreases for many personal-lines policyholders. These improvements do not mean every homeowner will see lower premiums, but they indicate that the crisis has moved from rapid deterioration toward a more uneven recovery phase.^[2]

What Has Changed Since the Peak of the Crisis?

The Florida Home Insurance crisis has not disappeared, but the market no longer looks exactly like it did during the worst 2022 and 2023 period. Homeowners should still compare coverage carefully, but they should also understand the difference between the crisis years and the more recent stabilization signals.

Issue	Earlier crisis pattern	Recent context
Citizens policy growth	Citizens grew rapidly as private carriers pulled back.	Citizens policy counts fell sharply from the 2023 peak, partly because of depopulation and private-market offers.[2]
Litigation pressure	High claim-related litigation was a major cost driver.	Florida reforms changed assignment-of-benefits and attorney-fee rules for many property claims.[3]
Premium direction	Many homeowners saw steep increases or limited options.	Some approved Citizens rates moved downward in 2026, but individual premiums still depend on location, roof, coverage, underwriting, and insurer.[4]

Main Reasons for Insurance Companies Leaving Florida

The exodus of home insurance companies from Florida is driven by several intertwined factors:

• Litigation Costs: The Insurance Information Institute (Triple-I) has highlighted the massive impact of litigation costs. Florida historically generated a disproportionate share of homeowners claim-related litigation compared with its share of homeowners claims, significantly inflating insurers’ costs and contributing to market instability.^[5]
• Reinsurer Retreat: Reinsurers pulling back from Florida, raising prices, or limiting capacity due to litigation risks, storm risk, and uncertainty has been a crucial factor. Companies like UPC cited market uncertainty as a primary reason for their exit.
• Fraudulent or Disputed Insurance Claims: The prevalence of questionable claims, especially disputed or inflated roofing claims, has put pressure on insurers. Scams involving roof damage and litigation have been widely cited as a factor in the crisis, though not every claim dispute is fraudulent.
• Legislative Environment: Florida’s former “one-way attorney fee” system compounded the issue, as insurers could be required to pay the legal fees of policyholders in successful lawsuits. Reforms enacted in 2022 and 2023 aimed to address these issues by restricting assignment of benefits and changing attorney-fee rules for many property insurance disputes.^[3]
• Natural Disaster Risks: Florida’s vulnerability to hurricanes, tropical storms, storm surge, and flooding adds inherent risk to insuring properties in the state. However, this factor alone is not the sole driver of the crisis, as legal costs, reinsurance costs, property values, rebuilding expenses, and underwriting concentration also matter.
• Financial Losses: Due to the combined impact of these factors, Florida property insurers experienced significant financial losses during the crisis period, with cumulative underwriting losses reaching billions across multiple years.
• Policy Restrictions: Some companies have tightened policy restrictions or nonrenewed policies to mitigate risk. For instance, limitations based on roof age have been introduced, although Florida law now limits the ability to deny coverage solely based on roof age when certain inspection or remaining-life conditions are met.

The crisis in Florida’s home insurance market is a complex issue caused by a combination of legal, environmental, and market factors. These challenges led to a significant reduction in available insurers and increased premiums for many homeowners, profoundly impacting the state’s insurance landscape. More recent rate filings, Citizens depopulation activity, and litigation reforms suggest the market may be stabilizing, but availability and pricing still vary widely by property and location.

Insurance Companies Exiting the Florida Market

The home insurance market in Florida experienced a significant exodus or pullback of insurance providers during the crisis. This retreat was marked by companies completely exiting, entering liquidation, pausing new business, nonrenewing certain policy types, or significantly scaling down operations in the state. Key names commonly associated with these withdrawals, insolvencies, or pullbacks include:

• Bankers Insurance: Known for a broad range of coverage options, Bankers Insurance announced that it would stop writing certain Florida personal-lines policies during the crisis period.
• Lighthouse Property Insurance: This company, which offered property insurance in several states, is also among the insurers associated with liquidation or withdrawal from Florida coverage.
• FedNat Insurance: A significant player in the market, FedNat’s insolvency and departure added to the growing list of insurers that left policyholders searching for alternatives.
• Avatar Property and Casualty: Avatar’s insolvency further narrowed the options for Florida homeowners seeking insurance.
• Lexington Insurance: As an AIG-related surplus-lines carrier associated with higher-value or specialized property coverage, underwriting changes or reductions in appetite can leave a gap for some premium property risks.
• St. Johns Insurance: Another casualty in the market, St. Johns Insurance’s insolvency further compounded the issue.
• Southern Fidelity, Weston, UPC, and Farmers: These companies previously announced liquidation, exit plans, or scaling down in Florida, significantly impacting the market.
• Progressive: One of the nation’s largest insurers, Progressive also made significant Florida underwriting changes, including nonrenewals of some property policies beginning in 2022.
• AAA: Although not leaving the state entirely, AAA announced nonrenewals of some policies in Florida.

Florida State Government’s Efforts to Mitigate the Home Insurance Crisis

The Florida state government has taken several significant steps to address the escalating home insurance crisis in the state. These measures aim to stabilize the insurance market, reduce fraudulent or abusive claims practices, and protect homeowners. Key actions include:

• Senate Bill 76 (July 2021): This bill includes provisions to reduce fraudulent claims, particularly targeting the solicitation tactics used in insurance scams.
• Special Legislative Session (May 2022): Governor Ron DeSantis convened a special session, resulting in a $2 billion injection into a Reinsurance Assistance Program (RAP), actions to limit skyrocketing attorney fees, and the establishment of a new program to improve home safety against hurricane damage.
• Legislative Changes (December 2022): The state legislature approved changes to home insurance laws, including phased flood-insurance requirements for many Citizens policyholders and rules encouraging eligible policyholders to accept comparable private-market offers when available.
• Hurricane Ian Aftermath Laws: In response to Hurricane Ian and the broader property-insurance crisis, new laws were passed focusing on flood insurance requirements, reinsurance support, claims handling, and market stabilization.
• Insurance Reform Bill (May 2022 Special Session): This legislation includes setting up the My Safe Florida Home Program, prohibits the denial of coverage based solely on roof age if certain conditions are met, and restricts attorney rates for property insurance claims.
• Senate Bill 2-A (December 2022): This significant reform package focused on eliminating one-way attorney fees in many property insurance suits and prohibiting assignment of benefits for certain new property policies, aiming to alleviate financial pressures on insurers and reduce abusive litigation practices.^[3]
• Expansion of My Safe Florida Home Program: This program has offered matching grants for eligible homeowners to undertake hurricane-readiness upgrades, which can also lead to wind-mitigation credits or insurance discounts when the upgrades qualify under an insurer’s rules.
• 2023 Legislative Session: Several new laws were introduced, including Senate Bill 1102, which updated motor vehicle glass damage claims, and House Bill 799, which modified rating factors and flood coverage requirements for different property types. House Bill 881 extended the My Safe Florida Home Program and adjusted eligibility or grant-related rules for certain homeowners.

These efforts by the Florida state government represent a comprehensive approach to tackling the complex challenges facing the home insurance market. While the full impact of these measures continues to develop over time, they signify a proactive stance in addressing the crisis and providing relief to both homeowners and insurance providers. Recent public statements from Florida regulators and Citizens have pointed to lower Citizens policy counts and approved rate reductions for many Citizens personal-lines policyholders, though these trends do not guarantee lower premiums for every homeowner.^[1]

Home Insurance Companies Still Operating in Florida

Despite the challenges, several insurers continue to offer home insurance coverage in Florida, though availability depends on the property, roof condition, location, claims history, underwriting rules, and whether the company is writing new business in that area. These remaining providers are crucial for homeowners in the state. Some notable names homeowners may encounter include:

• State Farm: As one of the largest and most recognized names in insurance, State Farm has maintained a Florida presence, though eligibility and product availability can vary by property and area.
• Travelers: Known for its broad insurance offerings, Travelers continues to be a name homeowners may compare in the Florida home insurance market where available.
• First Florida:  A regional insurance company, First Florida caters specifically to the needs of Florida residents, subject to current underwriting and availability.
• Nationwide: With a wide array of insurance products, Nationwide remains a recognizable name, although homeowners should confirm what property insurance options are currently available for their specific address.
• Vault Insurance: Specializing in high-end, customized insurance solutions, Vault Insurance may offer coverage for luxury homes and valuable personal property in Florida where the risk qualifies.

Another Crucial Player: Citizens Property Insurance Corporation

The Evolution into a Last Resort Insurer

Citizens Property Insurance Corporation, initially established as a property insurer of last resort, significantly evolved in its role within the Florida insurance market during the crisis. Citizens reached more than 1.4 million policies in force around its 2023 peak, but its policy count later declined sharply as depopulation programs and private-market offers reduced its exposure. This transformation highlights the dynamic nature of the insurance landscape in Florida, where Citizens stepped in to fill the widening gap left by other insurers and later moved toward a smaller insurer-of-last-resort role.^[2]

Unprecedented Growth of Citizens Property Insurance 

From 2018 through the crisis years, Citizens witnessed a remarkable growth trajectory. The number of policies under its management ballooned from roughly 414,000 in 2018 to more than 1,000,000 by August 2022 and more than 1.4 million in 2023. This rapid expansion was largely attributed to the exodus or pullback of other insurers from the Florida market, placing Citizens in a critical position to meet the growing demand for property insurance in the state.

The retreat of many carriers from the Florida market thrust Citizens into a vital role during the peak of the crisis, with the corporation at times adding thousands of new policies weekly.

This surge established Citizens as a primary insurance option in many regions of Florida during the crisis, reflecting the increasing reliance on this insurer of last resort by homeowners. More recent policy-count data shows Citizens shrinking again as private insurers assume more policies.

Potential Risks to Face

Despite its growth and later depopulation, Citizens faces similar challenges as other insurers: the company insures many high-risk homes, leading to concerns about the impact of a major hurricane on the company and the broader industry. As a result, the company has periodically had to seek rate adjustments, although some approved Citizens rates moved downward for 2026 personal-lines policyholders.^[4]

Citizens also faces risks associated with its reinsurance offerings. Particularly concerning is the potential impact of rating downgrades by agencies like Demotech, which could have far-reaching implications for the company’s stability and reputation in the market.

Transitioning to Private Insurers

In response to the overwhelming demand for its policies, Citizens initiated depopulation and transition efforts for large numbers of policyholders, offering or requiring eligible policyholders to consider private insurers when comparable coverage is available within statutory thresholds. Some offers can come with higher rates, so homeowners should compare premium, coverage, deductibles, exclusions, financial strength, and mortgage-lender requirements before accepting a new option. The 2023 transition deadlines marked a significant shift in Citizens’ strategy, aimed at balancing its portfolio and encouraging a more diverse insurance market in Florida.

Why can Home Insurance Companies in Florida Deny Coverage?

Home insurance companies in Florida can deny coverage, decline new business, or issue nonrenewals for various reasons, which are often related to the risks associated with insuring properties in the state. Some of the primary reasons include:

1. Location: Insurance companies may deny coverage or restrict availability if they deem a property to be at high risk for weather events, especially if it is located in areas that are particularly vulnerable, like coastal regions, barrier islands, or flood zones.
2. Condition of the Property: Insurers often assess the condition of a property before providing coverage. If a home is in poor condition or has not been properly maintained, it may be viewed as a higher risk. For example, homes with outdated electrical, plumbing, or roof systems might lead to a denial of coverage or a requirement to make repairs.
3. Roof Age and Condition: In Florida, the age and condition of the roof are critical factors due to the potential for hurricane damage. Insurance companies may deny coverage, request documentation, or require repairs if the roof is old or in disrepair. Legislative measures have, however, placed restrictions on denying coverage solely based on roof age when the roof has a certain remaining useful life.
4. History of Claims: Homeowners with a history of frequent insurance claims may be viewed as higher-risk clients. Insurers might deny coverage, surcharge the policy, or restrict options to avoid the potential for future claims, especially if previous claims were related to issues that could recur, such as water damage or mold.
5. Non-compliance with Building Codes: Florida has strict building codes, especially related to hurricane preparedness. Homes that do not comply with these codes, or have not been updated to meet current standards, may have fewer coverage options due to the increased risk of damage.
6. Fraudulent Activity: If a homeowner has a documented history of fraudulent insurance claims or related activity, insurers may deny coverage. This is part of a broader effort to combat fraud in the Florida insurance market, which has been a significant issue in recent years.
7. Insurance Company’s Capacity: Sometimes, a company may deny coverage simply because it has reached its capacity to insure additional homes in a certain area. This is often a risk management strategy to avoid overexposure in high-risk zones.

Insurance companies assess various factors to determine the risk associated with insuring a property. In Florida, where risks are often higher due to environmental, legal, and market factors, these assessments can lead to denials of coverage, nonrenewals, or higher premiums more frequently than in many other states.

Top Tips to Face the Crisis in the Home Insurance Market in Florida

How to Lessen Your Risk of Nonrenewal?

To reduce the likelihood of your home insurance policy being nonrenewed, consider the following steps. These actions cannot guarantee renewal, but they can make your property easier to underwrite:

1. Maintain Your Property: Regularly inspect and maintain your home, especially the roof, plumbing, electrical systems, and other structural components. Address any repairs promptly.
2. Mitigate Risks: Install safety devices such as smoke detectors, burglar alarms, and water leak detection systems. Consider wind-mitigation features if you live in a hurricane-prone area, and keep documentation that may help you qualify for credits.
3. Review and Update Your Policy: Ensure your policy reflects the current state of your home. Update it if you make significant improvements or changes.
4. Avoid Small Claims: Filing frequent small claims can flag you as a high-risk customer. It’s often better to handle minor issues out of pocket.
5. Pay Premiums on Time: Consistently pay your insurance premiums on time. Set up automatic payments if possible to avoid accidental lapses.
6. Stay Informed About Local Risks: Understand the specific risks in your area, such as flood zones, hurricane exposure, wildfire risk, or older-building concerns, and take appropriate measures to mitigate them.
7. Build a Good Relationship with Your Insurer: Regular communication with your insurance provider can be beneficial. Ask for advice on how to reduce risks and ensure you are meeting their requirements.

What to Do if Your Home Insurance is Canceled or Nonrenewed?

If your home insurance policy is canceled or nonrenewed, take these steps as soon as you receive the notice:

1. Understand the Reason: Ask your insurer for the specific reason for the cancellation or nonrenewal and the effective date. This information can guide you on what actions to take next.
2. Rectify Any Fixable Issues: If the cancellation is due to a fixable issue with your home, address it as soon as possible.
3. Shop Around for New Coverage: Start looking for a new policy immediately. Use online comparison tools, or consult with an insurance agent to find suitable options.

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4. Consider State-Run Insurers of Last Resort: If you’re having trouble finding coverage, check whether you may qualify for an insurer of last resort, such as Citizens Property Insurance Corporation in Florida. Eligibility rules and private-market offer requirements can apply.
5. Review and Compare Policies Carefully: When choosing a new policy, compare insurance quotes, coverage options, premiums, deductibles, exclusions, roof restrictions, hurricane deductibles, and lender requirements. Make sure the new policy meets your needs.
6. Act Quickly: It’s crucial to avoid a lapse in coverage, as this can make getting a new policy more difficult and expensive.
7. Address Any Risk-Related Concerns: If the nonrenewal is due to high risk, take steps to mitigate those risks before seeking a new policy.
8. Consult with Insurance Professionals: An insurance agent or broker can provide advice and assistance in finding a new policy, especially if you have unique or challenging insurance needs.
9. Consider an Insurer of Last Resort: If you’re in a high-risk area and unable to find coverage, your state may have a last-resort property insurance mechanism. In Florida, that role is generally associated with Citizens Property Insurance Corporation, subject to eligibility rules.

What To Do If Your Home Insurance Company Went Out of Business?

The possibility is unsettling, but many in Florida have experienced it firsthand: insurance companies can indeed become insolvent, meaning they go bankrupt or cease operations. In many such instances within Florida, the Florida Insurance Guaranty Association (FIGA) may step in for covered claims and policyholder obligations, subject to statutory limits and eligibility. Following this, if your insurance provider fails, you’ll need to embark on the journey of securing a new insurance carrier. But, what’s the best way to do it?

1. Contact Your State’s Insurance Guaranty Association: They may step in to cover eligible outstanding claims and policyholder obligations of insolvent insurers, subject to legal limits.
2. Look for New Coverage Immediately: Start searching for a new insurance provider as soon as possible to avoid any gaps in coverage.
3. Review Your Current Policy: Understand your current coverage to ensure your new policy meets or exceeds these standards.
4. Consult with an Insurance Agent: An agent can help you navigate the process of finding a new insurer and provide advice on suitable coverage options.
5. Keep Records of All Correspondence: Document all interactions with your former insurance company and the state guaranty association for reference.
6. Monitor Announcements: Stay updated on any information released by your state insurance department or the guaranty association regarding the situation.

Final Words on Florida Home Insurance Crisis

Florida’s home insurance market has undergone a significant crisis, marked by the withdrawal of numerous insurance companies and skyrocketing policy rates. This situation, affecting thousands of homeowners across the state, has been driven by a combination of factors. High litigation rates, with Florida historically accounting for a disproportionate share of homeowners claim-related litigation, and fraudulent or disputed claims have been major contributors. These issues, compounded by the state’s vulnerability to natural disasters and the economic impacts of inflation and supply chain disruptions, have led to substantial financial losses for insurers. ^[5]

As a consequence of the described scenario, many home insurance providers exited the market, entered liquidation, paused new business, or reduced their coverage during the crisis years, leaving homeowners with limited options and often facing abrupt policy cancellations. While the Florida home insurance market still faces significant challenges, the presence of established insurers, regional carriers, surplus-lines options, independent agents, and the continuing role of Citizens Property Insurance Corporation offers some stability and choice for homeowners. 

The crisis in Florida’s home insurance landscape remains a complex issue, highlighting the intricate interplay between legal, environmental, and market factors, significantly impacting homeowners and the broader insurance industry. The road to recovery is expected to be complex and gradual, with the market remaining sensitive to factors like hurricane seasons, reinsurance pricing, litigation trends, rebuilding costs, and other unforeseen events.

FAQs About the Florida Home Insurance Crisis

1. How many insurers have left Florida in the last few years?

In the past few years, Florida’s home insurance market experienced a significant exodus and pullback of providers. By July 2023, several major insurers or insurance groups, including Farmers Insurance, Progressive, and AAA, had announced withdrawals, nonrenewals, or restrictions on certain Florida policies. Additionally, in 2022, several insurance companies went insolvent in Florida. Some notable examples include Southern Fidelity, Weston Property & Casualty Insurance, United Property & Casualty Insurance Company (UPC), and FedNat. The exact count depends on whether you include insolvencies, full exits, partial withdrawals, pauses in new business, or nonrenewal programs.

2. Is it difficult to get homeowners insurance in Florida?

Yes, it can be challenging, especially in coastal areas, older homes, homes with older roofs, or areas with heavy hurricane or flood exposure. The level of difficulty largely depends on your location within the state and the condition of the property. Areas at greater risk of hurricane damage, such as coastal regions, often find it harder to secure coverage.

3. Why is homeowners insurance so expensive in Florida?

Florida’s susceptibility to tropical storms and hurricanes, due to its long coastline and subtropical climate, inherently makes it a high-risk state for insurers. Additionally, fraudulent or disputed claims, litigation related to assignment of benefits, rising reinsurance costs, and higher rebuilding costs have put considerable financial strain on insurance companies. These factors led many insurers to significantly raise rates to maintain financial stability.

4. Is home insurance mandatory in Florida if my policy is not renewed?

In Florida, home insurance itself is not legally mandatory by state law. However, if you have a mortgage on your property, your lender will typically require you to maintain a home insurance policy as a condition of the loan. Therefore, if your policy is not renewed, you must find new coverage to comply with your mortgage terms. 

Additionally, if you’re insured with Citizens Property Insurance Corporation, state law has phased in flood insurance requirements for many Citizens policyholders. For homeowners who own their property outright, insurance usually is not legally required by the state, but it is highly recommended due to Florida’s high risk for property damage.

5. Will my Florida home insurance policy get canceled?

The likelihood of cancellation or nonrenewal varies based on several factors, including your insurer, the condition and specifics of your home, the age and condition of your roof, your location, and your claims history. Actions like nonrenewal due to a home’s age, construction materials, or an insurer’s decision to exit a region or state are generally beyond your control. However, maintaining your home, minimizing small claims, documenting repairs, and installing wind-mitigation features can reduce the risk of policy cancellation or improve your options when shopping.

6. Will my home insurance rates go up?

Your rate may go up, but it is no longer accurate to say every Florida homeowner will automatically face the same direction of change. Home insurance rates rose sharply in Florida during the crisis years, and many homeowners still face expensive premiums. However, some approved Citizens rates moved downward for 2026, while private-market pricing remains highly dependent on location, roof condition, coverage limits, deductibles, claims history, and insurer appetite.^[4]

While part of the longer-term increase can be attributed to inflation and higher building material costs, state-specific circumstances, including the exit or pullback of several home insurance companies from the market in recent years, could still negatively influence your specific rates. The best approach is to compare quotes, review mitigation credits, confirm flood requirements, and avoid assuming that a statewide trend will match your individual policy.

Sources and References

1. Florida Office of Insurance Regulation, 2026 insurance rate relief and market-stabilization announcement. Source ↩
2. Citizens Property Insurance Corporation, Policies in Force public data. Source ↩
3. The Florida Senate, 2022A property insurance bill summary, including attorney-fee and assignment-of-benefits changes. Source ↩
4. Citizens Property Insurance Corporation, 2026 homeowners multiperil rate announcement. Source ↩
5. Insurance Information Institute / Triple-I, Florida property insurance litigation and post-reform market context. Source ↩