Florida Gets Real
All the Florida fit to print for Sunshine State residents and future ones.
FLORIDA PROPERTY INSURANCE: COSTLIER, RIGHT?
The laws of causal reasoning make property insurance in Florida a problem for people thinking of moving to the state.
Intense storms like Hurricane Ian are increasing, causing losses and ultimately higher premiums, right?
Avoid this black pit of negative expectations. Property insurance rates actually dropped in 2025 in the Sunshine State.
Last week, Florida Governor Desantis announced that rates for the state-backed Citizens Property insurer dropped by 8.7%.
Is this an aberration? A one-time remedy for a state that didn’t get hit by any major storms in 2025?
Are Florida lawmakers doing anything to make this a long-term trend and not an anomaly?
THIS WEEK’S FLORIDA STORY
The good news is that Florida legislators are bringing back proposed bills and measures that did not pass in the 2025 session to curb rate hikes, increase transparency, streamline claims and offer property tax relief.
Here a summary of some of the proposed 2026 legislation:
Senate Bill 30 (SB 30): caps annual rate increases (10-15%) and gives the Insurance Consumer Advocate more authority in hearings.
SB 128: requires insurers to pay for roof inspections (up to $300) if a roof has 5+ years of life left and mandates mediation before litigation
House Joint Resolution 209 (HJR 209): a proposed constitutional amendment to increase homestead property tax exemption for insured residents
SB 78: eliminates sales tax on impact resistant doors, windows and garage doors
SB 84: creates an advisory council to analyze insurance data and recommend policy changes
SB 160: creates the Emergency Residential Property Insurance Assistance Trust Fund to provide financial assistance to homeowners with household income not exceeding $250,000 who can demonstrate financial need or an inability to pay their homeowners' insurance due to rate increases.
Increased Oversight for MGAs (Various Bills): increased scrutiny on insurer affiliates (specialized types of agents/brokers with underwriting authority), requiring financial disclosures, capping of fees and prohibiting executive bonuses at troubled carriers.
The goals of some of this proposed legislation are
Rate Stabilization to limit how much insurers can raise rates annually
Transparency and demands for insurers to disclose affiliate payments, executive compensation and detailed loss estimates
Consumer Protection and protecting homeowners from unnecessary roof replacements and ensuring fair claims handling
Litigation Reform and mandating mediation and adjusting pre-suit notice requirements
This all sounds good, right? As you know, activity doesn’t necessarily mean results though.
There is one insurance rollout that is law, not proposed, that could have enormous ramifications for your Florida home or the purchase of one if you’re relocating here.
WHAT THIS MEANS…
The rule change applies to Florida’s state-back insurer.
As of January 1, 2026, any homeowner with a Citizens policy and a replacement cost of $400,000 or more must carry flood insurance — even if the home is not in a FEMA-designated flood zone.
If You Currently Live in Florida
This one rule means tens of thousands of Florida homeowners have a new insurance reality.
Replacement cost is not market value — it’s what it would cost to rebuild today, with current labor and materials.
This requirement expands again next year when all Citizens policyholders will need flood insurance regardless of home value.
If You’re Thinking About Moving to Florida
If you’re relocating to Florida and buying a resale property, make sure you clarify the flood insurance requirements BEFORE closing.
Non-Citizens-backed properties without the flood insurance requirement will be more attractive to buyers than those backed by the state and therefore pricier.
In more desired areas, this rollout will affect most single family homes, not just luxury properties.
This rule is relevant only to Florida.
WHAT EVERYONE GETS WRONG
Property insurance reform is not just local.
Federal legislation like Florida Congressman Jared Moskowitz’s Natural Disaster Risk Reinsurance Act seeks to give states tools to lower costs, keep insurers in the marketplace and protect families financially after catastrophic hurricanes, wildfires and other natural disasters.
The legislation offers insurers a federal reinsurance backstop with federal guarantees in the form of post-event bonds.
Quick Hit #1: One Thing People Get Wrong
Congressman Moskowitz’s bill, if passed, will automatically lower rates for everyone
What if insurers don’t pass on the savings to homeowners?
Quick Hit #2: Practical Tip
Start getting homeowners and flood quotes before you buy a home, as market conditions are dynamic and state and federal reforms progress
Optional: What We’re Watching
Ongoing Regulatory Battles: Expect continued tension between Florida’s efforts to keep rates low and insurers' needs for solvency.
Impact of Hurricane Season: The impact of the 2026 hurricane season will heavily influence rates and legislative actions for the remainder of the year.
FLORIDA PROPERTY INSURANCE: PAY ATTENTION
With all the impending legislation, the one thing that is certain is that you will have to pay close attention to property insurance if you’re thinking of moving to the state in 2026.
Be prepared to shop for policies. Save everything. Document everything
If you found this useful, feel free to forward it to someone considering a move to Florida.
And if there’s a Florida topic you want explained — housing, taxes or lifestyle — just reply to this email and let us know.
Who Are We?
Team John Garuti is one of the leading Florida real estate teams and has sold hundreds of homes in the state.
As Team Leader, I read and act on every reply.
— John
