Florida All Risk Insurance says 2025 homeowners market is stabilizing

Florida All Risk Insurance has announced that the state's homeowners insurance market is showing signs of stabilization in 2025. This development is attributed to recent legislative reforms, the entry of new insurers, and the first rate decreases in years. The announcement was made via a blog post.

The Florida homeowners insurance market faced a crisis during 2022–2023 due to factors such as excessive litigation, hurricane-related losses, and high reinsurance costs. According to Florida Realtors, legislative reforms have significantly reduced lawsuit abuse and attracted new capital into the market. Many of these new entrants are operating as reciprocal insurance exchanges, which allow policyholders to share risk and surplus through a member-owned model. This approach is gaining popularity amid Florida's reform efforts.

Citizens Property Insurance, known as Florida’s insurer of last resort, experienced a reduction in its policy count to 777,592 by June 2025—a decrease of 44.9% from its peak of 1.41 million in October 2023. Reporting by PropertyCasualty360 indicates that this shift is largely due to increased participation from private market carriers, including reciprocals. These entities offer more flexibility and alignment with members compared to traditional insurers, appealing to Floridians seeking stability and transparency as they transition away from Citizens’ coverage.

Insurance rates in 2025 have begun to decline, reversing Florida's long-standing trend of rising rates. Barron’s reports that Citizens Insurance implemented a 5.6% rate decrease for about 20% of its policyholders, with reductions reaching up to 6.3% in counties like Miami-Dade. Some savings are linked to competition from newer market participants such as reciprocal insurance exchanges, which often return surplus to members and avoid traditional profit motives—an attractive option for cost-sensitive markets.

Florida All Risk Insurance operates as an independent agency based in St. Petersburg, Florida, assisting homeowners in comparing policies from various carriers including traditional insurers and reciprocal exchanges. With over two decades of experience, the firm focuses on coverage optimization strategies, mitigation discounts, and navigating Florida’s evolving regulatory landscape. As reciprocal carriers gain traction statewide, the agency increasingly aids clients in understanding these alternative structures for long-term resilience.