Florida's insurance reforms yield results, but challenges persist

Florida homeowners are experiencing property insurance rate reductions: in fact, Panhandle-based insurance agent Trey Hutt notes an average decrease of 10.3% over the past year in his area. These lower rates come directly on the heels of the 2022 and 2023 reforms that addressed lawsuit abuse and curbed incentives for inflated claims. The result is a market that has been stabilizing for the past 12 months by every key measure, after multiple years of steep premium hikes. Consumers are benefitting from more carriers competing for their business, and the proof is in the rate filings: declines instead of double-digit increases. Florida is showing that litigation reform works. By curbing abusive practices and creating room for healthy competition, lawmakers have set the stage for a stronger, more resilient insurance market that puts homeowners first. https://lnkd.in/exrbuW9s

In this story from Reuters' The Insurer, PIFF's Michael Carlson shares insight on the Florida insurance market moving from deeply unbalanced to cautiously stable. More in "Reforms fuel Florida insurance revival:" https://lnkd.in/exvVFh4T

Florida insurers escalate the battle over public adjusters! At least six property insurers in Florida — including Velocity Risk, American Integrity, Orange Insurance Exchange, Safe Harbor, and US Coastal — are testing a new tactic: policy endorsements that discourage or even disincentivize policyholders from hiring public adjusters. The National and Florida Associations of Public Insurance Adjusters have now filed suit, arguing that these endorsements violate Florida law and amount to unfair trade practices. While surplus lines carriers like Lloyd’s syndicates can move more freely, several admitted carriers are seeking state approval for similar forms — offering premium discounts if homeowners agree not to engage public adjusters. The move highlights a growing rift between carriers seeking tighter control over claims handling and adjusters defending policyholder advocacy. Expect this battle to shape Florida’s property insurance landscape well into 2026. #Homeownersinsurance #Floridainsurance #publicadjuster #insurancenews #citizens Risk Advisors LTD https://lnkd.in/giX_cg6d

Insurance and Legal Reforms Work! A new report from reinsurance giant Gallagher Re confirms that recent legislative and legal reforms are successfully reversing Florida’s insurance crisis, bringing much-needed market stability. Check out the facts: • Litigation Drops: The number of property claims lawsuits against carriers has dropped significantly (to 2018 levels). • More Capacity: 14 new insurance companies have entered the Florida market since the reforms. • Costs Down: Reinsurance prices have fallen, including a risk-adjusted reduction in the latest renewals. • Market Health: Policies with the state insurer, Citizens Property Insurance Corp., have dropped sharply as business moves back to the private sector. The results are clear: reforms work to attract capital and stabilize the market. Go deeper:

Recent appellate decisions are continuing to clarify, and complicate, how Florida courts apply waiver and estoppel to coverage conditions versus forfeiture provisions in property insurance policies. In my world, this mainly plays out in the ACV vs. RCV context, but the implications could reach much further if (or when) the growing district split is resolved. In Dan Pitts, as Trustee for the Revocable Trust of Evelyn Pitts v. Universal Property & Casualty Ins. Co. (Fla. 6th DCA 2025), the court affirmed summary judgment for the insurer, holding that coverage failed because the named insured no longer resided at the property. The Sixth DCA emphasized that the “residence premises” clause was a coverage condition, not a post-loss procedural requirement, and therefore could not be waived or cured, even where the insurer knew the property was titled in a revocable trust and continued to accept premiums. That strict, text-driven reading aligns with the Fourth DCA’s approach in Universal v. Qureshi (Fla. 4th DCA 2024), where the court reversed a verdict for insureds seeking replacement cost damages without having performed the repairs. The Fourth DCA held that section 627.7011(3)(a) and the policy’s “as work is performed and expenses are incurred” language must be enforced as written, and that waiver or equitable arguments cannot create coverage that doesn’t otherwise exist. The Second DCA, however, went the other direction in Brito v. Citizens Property Ins. Corp. (Fla. 2d DCA 2025), holding that when an insurer completely denies coverage, it cannot later use that same “work performed/expenses incurred” language to limit recovery to actual cash value. The court reasoned that those payment-timing provisions apply only to covered claims, not to claims the insurer wrongfully refused to acknowledge at all. Selfishly, having served as Citizens’ appellate counsel in Brito, I’m still holding out hope that the Florida Supreme Court eventually adopts the Fourth and Sixth DCAs' reasoning. Better late than never.

The Texas Department of Insurance (TDI) has published draft mandatory appraisal rules for personal auto and residential property insurance in the state, with public comment open until Oct. 6. https://lnkd.in/eTzcyCiD

Florida’s property insurance law in 2025 feels less like a framework of rules and more like a maze with shifting walls. We’ve got carriers pushing arbitration one week, legislators rewriting deadlines the next, and courts struggling to reconcile competing policies. Add in the rise of drone inspections, managed repair programs, and AI-driven claim denials, and it’s no wonder homeowners are confused about what rights they actually have. For policyholders, the stakes are enormous: one misstep on a deadline or one misunderstood clause in a policy can result in coverage being withdrawn suddenly. For lawyers, it’s a constant balancing act of keeping up with legal developments while fighting to ensure that billion-dollar insurers don’t steamroll our clients. In short, Florida’s 2025 property insurance law may not be “fair,” but it is interesting. It’s a world where process is weaponized, where form can override substance, and where both insurers and policyholders wage quiet battles over minutiae. If this feels “weird,” it’s because it is. Florida’s insurance market has become a laboratory for new restrictions, loopholes, and insurer-friendly processes. But beneath the complexity, one truth remains simple: people pay for coverage, and they deserve to get what they paid for when disaster strikes. #Florida #PropertyInsurance #InsuranceClaims #Litigation

The insurance appraisal clause in Texas has raised concerns about the fairness and integrity of the insurance system in the state. In homeowner policies, the appraisal clause aims to resolve disputes over pricing differences, focusing on reaching an agreement on the cost of work when the scope remains unchanged. While this process is meant to facilitate efficient claim handling and timely payments, it has been exploited by appraisers and roofers, particularly in hail damage claims. Appraisers often advocate for full roof replacements based on even minor damage listed in the scope of work, leading to inflated claims and higher profits for roofers. This misuse of the appraisal clause has resulted in a significant surge in deductibles and premiums due to unethical practices. In some cases, contractors have been reported to waive deductibles (which is illegal) or offer discounts in exchange for positive reviews. The rampant abuse of the system threatens the insurability of properties in Texas, with deductibles exceeding $10,000 becoming commonplace. Without intervention from the Department of Insurance to revise and enforce stricter regulations on the appraisal process, the situation may worsen, ultimately jeopardizing the insurance landscape in the state. Addressing these challenges requires a comprehensive review and overhaul of the current appraisal clause to ensure fairness, transparency, and accountability in the assessment of claims. By implementing stringent measures and oversight, the industry can work towards restoring trust and stability in insurance practices. What are your thoughts on this issue, and what solutions do you believe would effectively address these concerns? #insurance #insuranceadjuster #estimating #adjuster #Texasinsurance #adjusting #contractor #deductible

Goldberg Segalla partner David Brown was quoted extensively in a Law360 article examining the persistent challenges facing the commercial auto insurance sector. According to a recent AM Best report, the industry has posted underwriting losses for 14 consecutive years. Co-chair of the firm’s Global Insurance Services practice group, David offers insight into why rate increases alone are not enough, and what insurers must do to navigate rising litigation costs and prolonged claims.

Goldberg Segalla partner David Brown was quoted extensively in a Law360 article examining the persistent challenges facing the commercial auto insurance sector. According to a recent AM Best report, the industry has posted underwriting losses for 14 consecutive years. Co-chair of the firm’s Global Insurance Services practice group, David offers insight into why rate increases alone are not enough, and what insurers must do to navigate rising litigation costs and prolonged claims.