Insurance Expert of Bankrate: 'Past reforms helped stabilized the market and attract insurers to Florida'

Shannon Martin, an insurance expert at Bankrate, has highlighted the challenges facing Florida homeowners due to stalled legislation. According to Martin, these residents are left without new insurance reforms or a hurricane tax holiday. This observation was shared on LinkedIn.

"Florida has a lot going on right now the typical insurance drama, legislative gridlock and oh yeah, hurricane season just started," said Martin, according to LinkedIn. "Homeowners who are crossing their fingers and hoping for more insurance reform this year are out of luck. Floridians pay an average of $5,409 per year for homeowners insurance132% more than the national average. Premiums still feel sky-high, and any recent relief hasn't come close to making up for years of steep increases."

According to the Florida Senate, reciprocal insurance exchanges have emerged as a potential alternative in high-risk states like Florida. These exchanges are risk-sharing cooperatives where policyholders insure one another and are governed by an attorney-in-fact. They often operate with lower administrative costs than traditional insurers, making them appealing during market instability. Florida statutes recognize these entities under Chapter 629, allowing them to conduct business in the state and offering communities a self-reliant insurance model amidst rising premiums and insurer withdrawals.

Bankrate reports that Florida homeowners face the second-highest average premiums in the United States, paying approximately $5,409 annually for $300,000 in dwelling coverage. This figure is about 132% higher than the national average of roughly $2,329. The steep costs are driven by factors such as hurricane exposure, litigation, and insurer losses. As a result, many are considering alternative coverage models like reciprocal insurance exchanges as a stabilizing force. These systems provide community-based risk-sharing solutions when traditional insurance markets underperform or withdraw.

Since 2020, more than 30 property insurers have exited or ceased issuing new policies in Florida, increasing pressure on Citizens Property Insurance Corporation (Citizens), the state’s "insurer of last resort." As of mid-2024, Citizens held over 1.2 million policies—far exceeding typical private-carrier levels—indicating significant market stress. In this context, reciprocal insurance exchanges have gained appeal due to their lower administrative overhead and ability to tailor coverage to high-risk communities.

Martin is an experienced insurance expert and writer at Bankrate who covers complex topics such as home, auto, and property insurance with a data-driven approach. With over ten years of experience in the industry—including roles at GEICO, Jerry, and The Hartford—she combines technical expertise with consumer advocacy to help demystify policy decisions for everyday readers. Based in Buffalo, NY, Martin holds a B.S. from the University of Louisiana at Lafayette and is also a licensed insurance agent contributing regularly to national insurance discussions.