I ran across a YouTube video the other day about property insurance in Florida. I was so flabbergasted I had to research it myself.
A study by The Florida Office of Insurance Regulation in 2022 found that Florida’s property insurance companies paid out $51 billion in claims costs in a ten-year period.
Here’s the kicker: Out of the $51 billion in claims paid, only 8% was paid to consumers. 71% was paid to attorneys and private insurance adjusters with the balance going to incidentals.
Despite accounting for only 9% of all homeowners’ claims in the US, Florida led the country in insurance-related litigation, accounting for 79% of the nation’s total. The 2020 and 2021 cumulative net underwriting losses for Florida’s homeowners insurers totaled more than $1 billion each year.
On Dec. 14, 2022, Florida Governor Ron DeSantis signed the property insurance reform bill Senate Bill 2-A into law. The new law seeks to cut down on lawsuits while mandating that insurers process and pay claims faster.
Among other actions, Senate Bill 2-A eliminates one-way attorney fees for property insurance claims; mandates that insurers pay claims faster; and eliminates assignment of benefit agreements, which allows policyholders to sign over claims to contractors. It also sets tighter deadlines for both policyholders and insurers in order to speed up the claims and payment process.
The 30-year fixed-rate mortgage continued to inch down this week, reaching its lowest level thus far in 2025. Recent mortgage rate stability is benefitting potential buyers, as purchase demand is stronger than this time last year. This is an indication that a thaw in buyer activity could be on the horizon.
