Florida's turning a corner that other states haven't reached yet
If you've renewed your homeowner's policy anytime in the last few years, you already know the feeling. The bill shows up, and it's higher again, sometimes a lot higher. So, when you start hearing that rates are falling and the market is widening, it's fair to wonder if that's true.
The honest answer is a little more nuanced than a headline, but it's genuinely good news, especially here in Florida.
What's happening nationally
Across the country, home insurance premiums are still going up, just not nearly as fast as they were. In 2024, average rates jumped by double digits in a single year. That pace has slowed dramatically, down to a much more modest increase this year, and most forecasts expect only a small additional increase heading into next year.
Florida is seeing rates fall
Here's the part that will surprise a lot of homeowners: Florida had the smallest rate increase of any state last year, essentially flat. And it gets better. Citizens, the state-backed insurer of last resort that so many homeowners turned to after other companies left the state, approved its first rate decrease since 2015 in July, with homeowners seeing an average cut of nearly 9%. In more than fifty of Florida's sixty-seven counties, average premiums with wind coverage actually went down.
That's not a fluke. Dozens of insurers have filed for rate decreases over the past two years, and Citizens total policy count has shrunk dramatically as homeowners move back to private coverage, a strong sign that the private market is genuinely healthier than it's been in years.
Why Florida turned the corner
A few years ago, the state passed reforms aimed at reducing the flood of lawsuits that had been driving costs for everyone, insured and uninsured alike. It worked. Florida used to account for a wildly disproportionate share of the nation's homeowner's insurance lawsuits relative to its share of actual claims. That share has fallen sharply since the reforms took effect, and it keeps dropping every year.
Add in calmer, more predictable losses and reinsurance relief for insurers, and you get companies who are more willing to write new policies here. New companies have entered the Florida market, bringing real new capital with them. That's the definition of a market widening, and its exactly why homeowners are starting to see real relief.
"For the first time in years, we're having a genuinely different kind of conversation with clients," said Ryan Papy, President of Keyes Insurance. "Instead of bracing them for another increase, we're actually finding savings for a lot of homeowners. That's a real shift."
Keyes Insurance has been tracking these shifts closely, and the timing lines up with something worth acting on. With more carriers competing for business and rates finally moving in a favorable direction, this is a genuinely good moment to have your policy reviewed rather than letting it auto renew without a second look.
What this means for you
None of this means insurance is suddenly cheap everywhere. Florida is still one of the most expensive states in the country for homeowners' coverage, and older homes, coastal properties, and anything with an aging roof can still carry a steep price tag even in a softening market. What's changed is the direction of travel, and direction matters. A market that's adding capacity and competition is a market where shopping around, asking about mitigation credits, and reviewing your coverage before renewal can genuinely pay off in a way it couldn't a couple of years ago.
It's also worth saying plainly that this recovery hasn't been tested by a serious hurricane season yet. Analysts are optimistic, but cautiously so. A rough storm season could tighten things back up. That's not a reason to expect the worst, just a reason to take advantage of the current moment rather than assuming it's permanent.
What Should I Do
Florida's insurance market spent years being the state everyone pointed to as an example of how bad things could get. It's genuinely encouraging to be able to point to real, independently verified numbers showing the opposite trend taking hold. It's not a full recovery, and there's still real work being done, but it's a meaningful turn in the right direction.
If it's been a while since you've had your policy reviewed, now is a good time. Reach out to Keyes Insurance, and we're happy to take a look at where things stand for you specifically.
Data and Information Sources
LendingTree, 2026, State of Home Insurance: 2026: lendingtree.com
U.S. Government Accountability Office, February 27, 2026, Homeowners Insurance: Premiums Generally Tracked Inflation but Rose More in Disaster-Prone Areas (GAO-26-107867): gao.gov
AM Best, December 1, 2025, Best's Market Segment Report: AM Best Revises Outlook on US Homeowners Insurance Segment to Stable From Negative: ambest.com
Florida Office of Insurance Regulation, July 2026, Property Insurance Stability Report: floir.com
Insurance Business America, 2026, Florida Homeowners Insurance Lawsuit Share Drops to 41% After Reform Push: insurancebusinessmag.com
The Keyes Company has a business relationship with Gallagher Property and Casualty, LLC d/b/a Keyes Insurance. Because of these relationships, referrals may provide Keyes Company and its owners a financial benefit. You are not required to use the listed provider as a condition for settlement of your loan or the purchase, sale, or refinance of the subject property. For more information, visit keyes.com
