If you've been watching Florida's insurance market over the past few years, you know it's been a wild ride. Carriers fleeing the state, premiums skyrocketing, and Citizens Property Insurance swelling to over 1.4 million policies. But here's the thing: 2026 is shaping up to be the year Florida finally turns a corner. Commissioner Mike Yaworsky is optimistic about market stabilization, and the numbers back him up. Fourteen new carriers have entered the market since historic reforms passed in 2024, bringing fresh competition and much-needed capacity.
That said, Florida still holds the dubious distinction of having the highest home insurance premiums in the nation—often exceeding $5,000 annually, and sometimes topping $11,000 depending on your location and coverage. Add in the auto insurance complexities of a no-fault state with 20% of drivers uninsured, and you've got a landscape that demands your attention. Whether you're a longtime Floridian or considering a move to the Sunshine State, understanding how insurance works here in 2026 can save you thousands and keep you properly protected.
The Home Insurance Market Is Finally Stabilizing
Let's start with the good news. After years of insurers abandoning Florida or going insolvent, the tide is turning. Between 2024 and early 2025, nine new property carriers entered the market, bringing over $418 million in policyholder surplus. By mid-2025, that number had grown to 14 new companies doing business in the state. These aren't fly-by-night operations either—new legislation requires carriers entering Florida to hold at least $35 million in extra reserves beyond their policy obligations.
Florida domestic property companies reported $944 million in net income as of year-end 2024, a dramatic reversal from the $741 million net loss in 2022. Even more impressive: since January 2024, 17 companies filed for rate decreases and 34 requested no rate increases at all. According to S&P Global Market Intelligence, Florida had the lowest average homeowners rate increase in the nation in 2024 at just 1%, while most states saw double-digit hikes.
What changed? Lawmakers passed sweeping reforms including banning assignment of benefits (which fueled litigation abuse), ending one-way attorney fees in insurance disputes, tightening claim deadlines, and encouraging reinsurance participation. These fixes tackled the root causes that made Florida such a toxic market for insurers.
Citizens Is Shrinking—And That's Great for You
Here's something that might surprise you: Citizens Property Insurance, Florida's state-backed insurer of last resort, is no longer the largest carrier in the state. By fall 2025, Universal Property & Casualty and State Farm Florida had overtaken Citizens in policy count. Citizens' rolls have plummeted from 1.4 million policies in September 2023 to just 427,000 in November 2025, with expectations to drop below 380,000 by year-end—the lowest level in 20 years.
Why is this good news? Because Citizens was never meant to be a massive primary insurer. When it swells, it puts all Florida policyholders at risk of assessments—basically, emergency surcharges to cover catastrophic losses. Through aggressive "depopulation" programs, 18 companies assumed over 1.2 million policies from Citizens through November 2024, reducing Citizens' exposure by more than $170 billion. That means private carriers are willing and able to insure Florida properties again, which increases competition and reduces your risk of surprise assessment fees.
Yes, Premiums Are Still Painfully High
Now for the reality check. Florida's home insurance premiums remain the highest in the nation. Estimates vary widely depending on coverage levels and location, but you're looking at anywhere from $5,376 to $11,759 annually for a policy with $300,000 in dwelling coverage—that's roughly 148% above the national average. Coastal homeowners in Miami-Dade, Jacksonville, and Tampa saw premiums explode in 2024, with some areas experiencing increases of 200% to 300%.
Why so expensive? Hurricanes, flooding risk, and a history of rampant litigation and insurance fraud have all contributed. But here's the silver lining: most homeowners should see premium decreases or flat renewals in 2025 and 2026 despite the turbulent 2024 hurricane season. Barrier island policies might drop up to 25%, inland areas west of I-75 could stay flat or decrease up to 10%, and Tampa Bay region policies could see decreases around 20%. The market is correcting, just not overnight.
Understanding Hurricane Deductibles
If you're new to Florida homeownership, hurricane deductibles can be confusing. Unlike your standard deductible, which is typically a flat dollar amount, hurricane deductibles are usually a percentage of your home's insured value. Florida law requires insurers to offer deductible options of $500, 2%, 5%, or 10% of your dwelling limit, with some exceptions based on your home's insured value.
For homes insured at $250,000 or more, insurers don't have to offer the $500 flat deductible—they can stick with percentage options. If your home is valued between $1 million and $3 million, insurers can offer 3%, 5%, and 10% deductibles instead. Here's the part that catches people off guard: the hurricane deductible applies once per calendar year, not per storm. So if two hurricanes hit Florida in the same year and damage your home twice, you only pay the deductible once.
The deductible kicks in when the National Hurricane Center issues a hurricane watch or warning for any part of Florida and extends through 72 hours after all warnings end. This is important to know because you want to make sure you can afford your deductible amount—on a $300,000 home with a 5% hurricane deductible, you'd be paying $15,000 out of pocket before insurance coverage kicks in.
Auto Insurance: Navigating Florida's No-Fault System
Florida operates under a no-fault auto insurance system, which means after an accident, your own insurance covers your medical bills and certain other losses regardless of who caused the crash. Every driver must carry at least $10,000 in Personal Injury Protection (PIP) coverage. PIP pays 80% of your reasonable medical expenses up to the $10,000 limit and covers 60% of lost wages resulting from the accident.
Here's the catch: you must seek initial medical treatment within 14 days of the accident to qualify for PIP benefits. Miss that window, and you could be stuck with the bills yourself. And while Florida doesn't require bodily injury liability coverage (unusual among states), you're taking a huge risk going without it, especially given that about 20% of Florida drivers are completely uninsured.
That brings us to uninsured motorist coverage. It's not required in Florida, but it absolutely should be on your policy. If an uninsured driver totals your car or causes serious injuries, UM coverage steps in to cover medical expenses, lost wages, and pain and suffering—things PIP doesn't cover. Florida implemented stricter regulations in 2024 highlighting the consequences of refusing UM coverage, underscoring just how important it is in a state where one in five drivers has no insurance at all.
What You Should Do in 2026
The Florida insurance market is improving, but you still need to be proactive. First, shop around—with 14 new carriers competing for business, you may find better rates than you've seen in years. If you're currently with Citizens, ask your agent about private market options. You'll likely get better service and avoid the risk of future assessments.
Second, review your hurricane deductible. If you chose a high percentage deductible to save on premiums when the market was insane, consider whether you can actually afford that out-of-pocket cost. With rate decreases becoming more common, switching to a lower deductible may be more affordable now.
Third, if you drive in Florida, add uninsured motorist coverage to your auto policy if you don't already have it. The statistics are clear: you're sharing the road with hundreds of thousands of uninsured drivers. Don't leave yourself vulnerable to a financial disaster because of someone else's irresponsibility. The peace of mind is worth the extra premium, and with market stabilization, that premium is more reasonable than it's been in years.
