After Years of Pain, Florida’s Insurance Market May Finally Be Turning

My own renewal notice told the story: after 35 years with USAA, I switched carriers, improved my coverage, and cut thousands from my homeowners premium. Florida homeowners should be shopping again.

For years, Florida homeowners have been trained to expect the worst from their insurance renewal.

The envelope comes. The premium goes up. The explanation is vague. The choices feel limited. You grumble, pay it, and move on because this is Florida, and the insurance market has been a mess for so long that most people stopped expecting anything better.  The last few years in particular have been brutal with cancellations, companies leaving Florida, and crazy premium increases.

That may be changing.

I learned that the practical way — not from a press release, but from my own renewal.

After 35 years with USAA, I canceled my homeowners policy and moved to a new carrier. USAA had proposed another annual increase, taking my homeowners premium to roughly $9,000 a year. I shopped the market and found a new policy for about $5,000, with higher coverage across the major variables in the policy.  When I called them to cancel, before I cancelled I asked them why the premium was skyrocketing and the call center guy (who cared 0 about my cancellation) gave me some canned, nonsensical answer.  I was lazy about shopping this around for way too long, trusting that there wasn't enough of a reason.  

To give the new carrier comfort on the roof, I paid $100 for a wind mitigation inspection. The new policy started June 1, 2026. USAA even sent me a refund for premiums I had paid in advance.  I made thousands on this deal.  

Then I did the same thing with my auto insurance.

I dropped USAA there too which I have had for 35 years, bundled the new homeowners and auto coverage, and saved a substantial amount again. I should have done this years ago. A lot of Florida homeowners probably should have.

I don't sell homeowners insurance, in case you were wondering

That is not an advertisement for any one company.  I don't sell homeowners insurance. It is the point of this article: the Florida insurance market may finally be changing enough that loyalty, habit, and fear are becoming expensive mistakes.

For the first time in a long time, there is a little daylight in Florida’s insurance crisis. Not victory. Not normal. Not cheap. But daylight.

Citizens Property Insurance Corporation, Florida’s state-backed insurer of last resort, announced that its 2026 multiperil homeowners rates will drop by an average of 8.8 percent statewide under rates approved by regulators. Citizens also said all personal lines policyholders will see at least a 2 percent reduction.¹

That matters because Citizens (owned by the State of Florida) became the pressure valve for a broken market. When private carriers left, tightened underwriting, or priced policies out of reach, Citizens grew. It was never supposed to become the default insurer for huge portions of Florida. It was supposed to be the place homeowners went when private coverage was unavailable.

Now the state is trying to move Citizens back toward that role, and there are signs the private market is beginning to absorb more policies again. In Tampa Bay alone, Citizens reportedly dropped roughly 150,000 policies in 2025 as private insurers stepped in.²

That is not a minor shift. It suggests private carriers are willing to write business again where, a few years ago, many wanted less Florida exposure, not more.

The state has been working for several years to force this turn. Lawmakers changed parts of the claims and litigation system. Regulators have pointed to signs of stabilization. Some carriers have filed for rate decreases. More insurers have entered or expanded in the Florida market.³

Homeowners do not need to become insurance policy experts to understand the practical takeaway. When more carriers want your business, you have more leverage. When you have more leverage, you should shop.

That does not mean every homeowner will save what I saved. Some properties are still difficult to insure. Older homes, coastal homes, homes with aging roofs, and homes in areas viewed as high-risk may still face ugly premiums. Florida is still Florida. Hurricanes are still hurricanes. Rebuilding costs are still high.

But the old assumption — that shopping is pointless because every quote will be terrible — may no longer be true.

The weather may also be giving the market time to heal. NOAA is predicting a below-normal 2026 Atlantic hurricane season, with 8 to 14 named storms, 3 to 6 hurricanes, and 1 to 3 major hurricanes.⁴ That forecast does not protect anyone. One storm can still ruin a quiet year. But for an insurance market trying to regain its footing, a less active season could buy time.

Time matters.

It gives reforms time to show results. It gives insurers time to price risk with more confidence. It gives Citizens time to shrink. It gives homeowners time to strengthen their homes before the next major storm finds us.

That last part is not theory. My $100 wind mitigation inspection helped document the condition and wind resistance of my home for the new carrier. Florida homeowners should think about that more seriously. A good roof, documented wind mitigation features, proper shutters or impact protection, reinforced doors, and a properly rated garage door can matter. If you improved your home, make sure your insurance company knows. If you have not had a wind mitigation inspection, ask whether one could help.

The lesson is simple: insurance is not only about the policy. It is also about the property.

A stronger home is a better risk. A better risk can attract better pricing. Better documentation can give a carrier more confidence. And in a market where insurers are beginning to compete again, that may matter more than it has in years.

Florida homeowners have paid dearly through this crisis. They have dealt with canceled policies, shrinking options, exploding premiums, roof disputes, hurricane anxiety, and renewal notices that felt less like bills and more like threats.

So no, this is not a victory lap.

A few rate reductions do not erase the damage. They do not help the homeowner still facing an impossible premium. They do not solve the insurance problem for every property or every ZIP code. They do not mean the next storm will be kind.

But it would also be foolish to ignore a turn when it starts.

Citizens rates are dropping. Private insurers are taking policies. Some companies are filing rate decreases. A quieter hurricane forecast may give the market breathing room. Home-hardening and wind mitigation are back in the conversation. And homeowners who have not shopped in years may discover that the renewal notice is no longer the final word.

That is the practical message.

Do not assume your longtime carrier is rewarding your loyalty. Do not assume last year’s market is this year’s market. Do not assume the renewal premium is the best you can do. Call an independent agent. Get competing quotes. Ask about wind mitigation. Ask about bundling. Review your deductibles. Compare coverage carefully, not just price.

I stayed with one company for 35 years. Then I finally shopped, changed carriers, improved my coverage, and saved thousands.

I should have done it years ago.

You probably should shop too.

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Footnotes:

1. Citizens Property Insurance Corporation, “Citizens’ 2026 Multiperil Rates to Drop Statewide,” March 4, 2026.
2. Axios Tampa Bay, “Citizens drops 150K policies in Tampa Bay as private insurers step in,” February 24, 2026.
3. Executive Office of Governor Ron DeSantis / Florida Office of Insurance Regulation, 2026 insurance market stabilization and rate relief statements.
4. NOAA, “NOAA predicts below-normal 2026 Atlantic hurricane season,” May 21, 2026.