Florida home insurance market stabilizes early in 2026

FORT MYERS, Fla. —

Florida's home insurance market is stabilizing early in 2026, with state leaders noting improvements following recent reforms aimed at reducing fraud and limiting costly lawsuits.

For years, homeowners in the state faced challenges from hurricanes, lawsuits, and insurance companies exiting the market, leading to over a million policyholders relying on Citizens, Florida's insurer of last resort. However, state leaders now say the market is turning a corner.

Maryann Almeida, a Florida resident, said, "After Ian, the rates just went out of control." Lawmakers have addressed fraud and limited costly lawsuits, making Florida more attractive to insurers, resulting in more companies writing policies again. Almeida added, "It was so scary because you hear stories of people, do they pay their insurance or do they get their medicines?"

Rate increases are slowing, with six companies announcing rate cuts, including Florida Peninsula Insurance at 8.4%, Heritage Property & Casualty at 6.4% in Lee and Collier, The Patriot Select Insurance at 11.3%, and Citizens Property Insurance up to 11%.

This is welcome news for retirees like Almeida and her husband Bob, who are on a fixed income.

"We're on a fixed income, we're both retired, and it's scary because you don't know what tomorrow is going to bring," Almeida said.

Insurance agent Doug Nellans expressed optimism, saying, "We're heading into 2026 with a positive note." He predicts more rate decreases, noting, "It puts pressure on other carriers to follow suit and file rate decreases of their own." Citizens Insurance has reduced its customer base from 1.4 million in 2023 to 396,000. Nellans advised, "Now is a great time to shop the market because companies are wide open for business."

Despite these improvements, Florida still has some of the highest home insurance costs in the nation, with an average cost of nearly $5,000 a year. Older homes, including modular and coastal properties, pay even more.

Almeida urged lawmakers to do more, saying, "If they could just go one month on what we get for social security, I guarantee things would change."

While 2026 brings more stability, experts say it's a reset, not a rollback. Even with some relief, experts say Florida homeowners should not expect premiums to return to pre-pandemic levels soon. Lawmakers emphasize that the goal now is stability while monitoring how this year's hurricane season impacts rates going forward.

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