Many Florida residents still struggle with premium hikes as cost factors persist.
Insurance rates in Florida are still bouncing around, even after lawmakers passed changes they said would help. A recent update from the Florida Office of Insurance Regulation showed that while costs dipped slightly last year, they’ve started creeping up again. The base rate for property insurance in Florida went up by 0.3% in the first part of 2025. That doesn’t sound like much on its own, but when one takes a step back, it adds up. Since 2022, people in Central Florida are paying nearly 40% more for coverage due to rising insurance costs. For most, that’s a big chunk out of their budgets.
A few years ago, lawmakers said they were going to fix what they called an insurance crisis. Their fix made it tougher to sue insurance companies and was meant to draw more companies into the state. The idea was that more competition would lead to better pricing. It worked in one sense—new insurers have entered the market—but prices haven’t dropped as much as people hoped. There was a small decrease in 2024, and some experts say the changes are finally helping, just slowly.
One group, the Insurance Information Institute, said Florida had the lowest average rate filing in the country in late 2024. That’s a big deal, considering how high Florida’s rates have been for years. Still, it’s not something most homeowners are feeling yet. According to recent data, the typical base price for home insurance in Orange County is around $2,600, with the cheapest policies under $900 and the most expensive over $6,000. That’s a widespread, and for some, even the lowest rates feel too high.
What’s making things worse is that base rates aren’t the only part of the bill. A person’s actual premium—the amount they pay—is affected by lots of things. Construction costs, labor, supply chain issues, and even tariffs on building materials all play a part. When prices go up at the hardware store or wages rise for workers, insurance companies adjust their numbers. One study found that the cost to rebuild homes went up 55% between 2020 and 2023. That’s nationwide, and Florida wasn’t spared.
Insurance companies also pay for what’s called reinsurance—it’s insurance for insurance companies—and that cost gets passed along to homeowners. It can make up nearly half the premium bill. So even if the base rate looks flat, people might still see their bills jump if other factors shift. And then there’s the legal side. For years, lawsuits over claims added to company costs, and that got passed to consumers. Cutting back on those lawsuits was part of the big changes lawmakers made, and supporters say it’s made a difference.
Still, not everyone is seeing savings. That’s why experts say it’s a good time to shop around. After years of having few choices, more companies are doing business in Florida. Agents say they’re able to find better deals for their clients, sometimes cutting last year’s premium in half. That doesn’t mean everyone will see those savings, but it means people can finally compare again.
And if the market keeps heading in the right direction, more homeowners might catch a break. It won’t happen overnight. State officials admit it’s going to take time for most people to really feel the effects of the reforms. In the meantime, policyholders are encouraged to stay in touch with their agents, ask for a re-quote, and look into home upgrades that might qualify for discounts.
There’s also a state program that helps pay for wind protection improvements, and some homeowners might benefit from it, especially amid rising insurance costs. It’s not a quick fix, but in a state where storms are common and rebuilding is expensive, every little bit helps. The bottom line is that it’s important to stay alert, ask questions, and don’t assume that a current policy is the best one out there.
Sources:
After Florida sees ‘historic’ low rates, new report shows home insurance increases
Florida Insurance Market Turmoil Continues, Homeowners Face New Hurdles In 2025
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