Moving to Florida• Apr 8, 2026• 13:39

Florida Insurance and Taxes 2026: Is The Crisis FINALLY Over?

From Moving to Florida

Adrienne

Executive Summary

Florida's 2022-2023 legislative reforms are showing early signs of stabilizing the homeowners insurance market by curbing excessive litigation, leading to 17 new insurers entering the state.
Despite a 54% cumulative increase in homeowners insurance rates from 2019-2024, Florida's rate of increase is now slowing and is comparable to or even lower than other states like Iowa (66%) and Nebraska (73%).
The state-backed insurer, Citizens Property Insurance, is seeing a reduction in policies, indicating a shift towards a healthier, more competitive private market.
A recent legislative proposal to gradually eliminate property taxes for homesteaded properties failed, highlighting the ongoing tension between providing tax relief and funding essential local government services.

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Concerns Raised

The high cumulative cost of homeowners insurance and property taxes remains a significant burden on affordability.
Uncertainty surrounding future property tax legislation creates unpredictability for homeowners and local governments.
The overall cost of homeownership (PITI) is a major headwind for the real estate market.

Opportunities Identified

The positive effects of the 2022-2023 insurance reforms are beginning to materialize, potentially leading to long-term rate stabilization.
The entry of 17 new insurance carriers is increasing competition and providing more options for consumers.
Florida's existing homestead exemption provides significant, compounding tax savings for long-term primary residents.

Key Themes

Florida's Insurance Market Reform

The episode details the recent history of Florida's homeowners insurance market, which was plagued by excessive litigation, accounting for a disproportionate number of national lawsuits. Legislative reforms in 2022 and 2023 aimed to curb this issue, and the market is now seeing positive effects, such as new insurers entering the state and the state-backed insurer shedding policies.

This theme is critical for understanding the structural changes in one of the most significant costs of homeownership in Florida, providing context for current rate stabilization and future market health.

Comparative Insurance Rate Analysis

While Florida's insurance rates have seen a significant 54% cumulative increase since 2019, the analysis shows this is part of a national trend (44-45% average). Furthermore, other states are now experiencing even faster rate hikes, suggesting Florida's crisis, while severe, is not unique and its legislative actions may be tempering further increases relative to the rest of the country.

This contextualizes Florida's insurance costs, challenging the narrative that it is an isolated outlier and providing a more nuanced view for individuals and businesses evaluating the state's economic landscape.

Property Tax Policy and Affordability

The discussion covers Florida's existing homestead exemption, which caps annual property tax assessment increases at 3%, and a recent, more radical proposal to eliminate property taxes for homesteaded properties. The failure of this bill underscores the political and fiscal challenges of implementing major tax cuts that could defund local services like fire departments and infrastructure.

This highlights a key debate in Florida governance that directly impacts housing affordability and the financial stability of local municipalities, a crucial factor for residents and investors.

Flood Insurance Nuances

The episode distinguishes homeowners insurance from flood insurance, noting that the latter is a separate, federally managed program. It addresses the 2022 FEMA methodology change and clarifies that flood insurance is generally obtainable, even for previously flooded properties, and that policies can sometimes be transferred from seller to buyer to ease the initial cost burden.

This clarifies a common point of confusion for property buyers in a coastal state, explaining the availability and mechanics of a critical but separate insurance product.

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Topics

Florida homeowners insurance Insurance reform Litigation reform Property taxes Homestead exemption Citizens Property Insurance FEMA Flood insurance Real estate affordability Florida economy State legislation Insurance rates Housing market Brad O'Connor Hurricane Ian

Processed Apr 20, 2026 yt-dlp + mlx-whisper + Gemini