Florida's Property Insurance Landscape

The Current Environment

More than one million Floridians are now insured by Citizens Property Insurance Corporation, which was created by the Legislature to provide insurance to those without private insurance. Florida lawmakers are working to address homeowners' growing concerns regarding the availability and affordability of property insurance.

Contributing Events

Hurricane Andrew. After a 17-year lull in major landfalling hurricanes in Florida, Hurricane Andrew roared ashore in South Florida near Homestead on August 24, 1992. With insurance claims reaching almost $16-billion, several of the state's insurance companies went bankrupt while many more lost large percentages of their equity. Those that remained reevaluated their risk in Florida, canceling or not renewing hundreds of thousands of policies and raising insurance premiums. Over the next several years, Florida did experience damaging hurricanes, such as Opal in 1995 and Irene in 1999, but none equaled Andrew.

2004 - 2005 Hurricane Seasons. On Aug. 13, 2004, category 4 Hurricane Charley made landfall in Southwest Florida. Charley, the strongest hurricane to hit the U.S. since Andrew hit Florida 12 years before, cut a destructive path across Florida from Port Charlotte to Daytona Beach. Damage to the state was estimated at $13 billion. Over the next six weeks, three more hurricanes hit the state: Frances, Ivan, and Jeanne. The 2005 Hurricane Season did not spare Florida, with hurricanes Dennis, Katrina, Rita, and Wilma all hitting the state. In 2004 and 2005, $75 billion in insured losses were reported for the U.S.

Homeowners' Perspectives

• News Stories
  • The Insurance Crisis, St. Petersburg Times Special Report
  • Florida's Insurance Crisis, Palm Beach Post Special Report
• Consumer Advocacy Groups
  • FIRM (Fair Insurance Rates in Monroe) 

Policymakers' Perspectives

• Gov. Charlie Crist on Insurance Reform (scroll past Property Tax Reform)
• Florida Office of Insurance Regulation
• Florida Office of Insurance Regulation, Legislative Affairs

Insurance Industry's Perspective

• Associations
  • American Insurance Association
  • Florida Association of Insurance Agents 
    See Mitigation: A Report Card on Florida's Quest to Harden Homes , a white paper released by FAIA in August 2009.
  • Florida Insurance Council
  • Independent Insurance Agents and Brokers of America
  • Insurance Information Institute
  • National Association of Mutual Insurance Companies
  • National Association of Professional Insurance Agents
  • Property Casualty Insurers Association of America
• Industry Studies
  • National Study Focuses on Florida's Insurance Crisis