Florida homeowners insurance lawsuit share drops to 41% after reform push

According to the Florida Office of Insurance Regulation's July 2026 Property Insurance Stability Report, Florida's share of nationwide homeowners insurance lawsuits has significantly declined from 79% in 2020 to 41% in 2025. This shift, along with a reduction in the state's share of national homeowners claims, is attributed to litigation reforms passed by the Florida Legislature in 2022 and 2023. These reforms, including the repeal of one-way attorney fee statutes, have reduced the incentives for frivolous litigation and lowered average defense and containment costs per claim.

The report highlights a stabilizing market, noting that 21 new companies have been approved to write residential property policies in Florida since the reforms. Furthermore, average homeowners premiums with wind coverage have fallen in the majority of Florida's counties, and domestic property insurers reported their lowest pooled combined ratio in over a decade in 2025.

While litigation rates remain higher for windstorm and hail claims, the overall impact of the reforms is evident in the decreasing litigation rates and the reduction of policies held by Citizens Property Insurance Corporation, which reached a 25-year low. Additionally, preliminary 2026 data indicates that nearly half of insurers are experiencing risk-adjusted reinsurance pricing reductions.

(Source：Insurance Business)