Florida’s Insurance Market Faces New Questions as Homeowners Are Moved to New Carriers

Florida’s insurance market has spent the last several years navigating rising premiums, insurer insolvencies, and a shrinking number of coverage options for homeowners. In response, state leaders have worked to reduce the size of Citizens Property Insurance Corporation, Florida’s insurer of last resort, by transferring policyholders to private insurance companies.

While these efforts have introduced new options into the marketplace, recent reporting has raised concerns about whether all policyholders fully understand the companies now providing their coverage.

A Changing Insurance Landscape

As Citizens policies continue to be transferred into the private market, many homeowners are finding themselves insured by companies they may know very little about. In some cases, policyholders have reported learning about the transition only after a loss occurred or when they needed to file a claim.

The goal of the depopulation effort is to reduce the financial burden on the state and encourage private-market competition. However, critics argue that rapid growth among newer insurers can create questions about long-term financial stability, particularly in a state where catastrophic weather events remain a constant threat.

Citizens policies skyrocketed after a spate of insolvencies

Starting in 2021, nine property insurance companies went insolvent, including some of the state’s largest such as FedNat and United Property & Casualty Company (UPC). Many of their customers were left with nowhere to go but Citizens, the state-run insurer of last resort. A policy of “depopulation” would later offer powerful incentives to new startup insurance carriers to take these policies off of the state’s hands.

Chart: Scott Pham / CBS NewsSource: Citizens, Florida Office of Insurance Regulation

Why Financial Strength Matters

Insurance is ultimately a promise to pay future claims.

For homeowners, the true test of an insurance company is not during periods of calm weather, but after a major storm when thousands of policyholders may need assistance at the same time.

Recent allegations involving one Florida insurer have renewed discussions about how insurance companies manage premium dollars, build reserves, and prepare for future disasters. While the claims remain disputed, the situation highlights a broader concern shared by many policyholders: whether insurers are positioned to fulfill their obligations when they are needed most.

Preparation Extends Beyond the Policy

The conversation extends beyond any single company.

Homeowners should understand who insures their property, review policy provisions carefully, and stay informed about changes that may affect their coverage. Questions about financial stability, claim procedures, repair provisions, and policy terms can become critically important after a loss occurs.

In today’s insurance environment, having coverage is only part of the equation. Understanding that coverage—and the company standing behind it—is equally important.

Florida has experienced multiple insurance market cycles over the years, with periods of instability followed by efforts to restore competition and consumer confidence. Whether the current reforms create lasting stability remains to be seen.

What remains certain is that policyholders should remain engaged, informed, and proactive. As hurricane season continues, preparation involves more than securing a policy—it means understanding the protections, limitations, and recovery resources available before a disaster strikes.

Since 2012, GlobalPro has worked alongside policyholders, helping homeowners, businesses, and communities navigate insurance complexities and make informed decisions before and after a loss. Because when recovery is on the line, knowledge is one of the most valuable assets a policyholder can have.

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