The consequences
The solution
The results
Other factors to consider
Final thoughts
The consequences
After the destruction of Hurricane Ian, the market experienced:
• A mass exodus of insurance carriers, leading to a supply shortage.
• Property premium increased significantly.
• Weaker and / or stricter Terms and Conditions.
• Significantly higher wind deductibles.
• 100 % co-insurance clauses, even with updated appraisals.
• A surge in citizens property insurance corporation policies, rising from 437,000 in 2018 to over 1.4 million.
The solution
The property market deterioration was so severe that Florida legislators were forced to take action to restore stability and attract insurers back to the state. What followed were significant legislative reforms which include but are not limited to:
• The repeal of Florida’ s oneway attorney fee provisions( which had incentivized excess lawsuits).
• The prohibition of assignment of benefits( AOB), preventing third parties from taking over claims and inflating costs.
• Reaffirming citizens as the insurer of last resort, encouraging more policies to transition to private insurers
Since these reforms, four additional hurricanes have hit Florida, three of them just last year. In the aftermath of hurricane Milton, many expected further market instability, but the opposite occurred. Due to the legislative changes, insurers were in a much stronger financial position than they were after Hurricane Ian. Additionally, new insurers have slowly re-entered the Florida market.
The results
• Stabilized property insurance rates.
• Improved policy terms and conditions.
• Lower wind deductibles.
• Agreed value replacing co-insurance clauses.
• Citizens’ policy count declining to under 850,000 for the first time since March 2022, with expectations of dropping further to 771,000 by the end of 2025.
Other factors to consider
Though we are seeing the Florida market showing positive signs of recovery, external factors beyond our control still impact property insurance. Reinsurance companies that support Florida insurers also underwrite policies nationwide. This means disasters in other states can indirectly affect us here in Florida. For example, the fires in California. As total losses from these events continue to be assessed, we anticipate some impact on reinsurance pricing moving forward.
Final thoughts
Florida has seen unprecedented destruction and financial losses over the past eight years, leading many to question the sustainability of the property insurance market. However, the current legislative actions taken have begun to yield positive results – including stabilized rates and more favorable terms and conditions – offering relief to many communities associations. By staying informed about the current market conditions, board members and property managers can better prepare their associations for what’ s to come while managing expectations appropriately.
WWW. CAIWESTFLORIDA. ORg community • December 2025
41