Florida Property Insurance Market Has Stabilized

State homeowners may see more options as Citizens Property Insurance shrinks its policy count and legal costs.

Updated on Sept. 23, 2026 in Insurance

Flat opaque gouache-painted illustration of a house on stilts at the coast, representing a stabilized property insurance market in Florida. — Florida's property insurance market has stabilized as Citizens Property Insurance significantly reduced its policy count following successful legislative reforms to litigation costs. AI Illustration. Upload story photo >

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Citizens Property Insurance reduced its policy count to 255,000 as of September 18, 2026, down significantly from 1.4 million in September 2023. This shift reflects a cooling in the state property insurance market following legislative reforms targeting lawsuit costs.

Why it matters

The reduction in state-backed policies aims to lower the long-term financial risk for Florida residents from potential hurricane damage. Market stabilization is further evidenced by 48 insurance companies filing for rate decreases since January 2024.

Citizens Property Insurance holds a total insured value of $70 billion with a current market share of 1.8%. Since 2023, lawsuits involving the insurer have decreased by 55%, while 48 companies have filed for rate decreases.

The players

Timothy Cerio

The President of Citizens Property Insurance who recently stated the state property insurance market is functioning correctly.

Mike Yaworsky

The Insurance Commissioner who expects more aggressive rate cuts for Florida policyholders through 2027.

Ron DeSantis

The Governor of Florida who signed SB 1028 to regulate commercial policy clearinghouses.

The details

Legislative changes targeting litigation costs have allowed the state-backed insurer to shift policies back to private firms whenever coverage is within 15 percent of the Citizens rate. The company has also reduced its workforce to under 900 employees, down from 1,300 in 2023. These shifts are occurring alongside an absence of hurricane landfalls in Florida in 2025 and 2026.

2012: Initial depopulation efforts began after the policy count hit 1.48 million.
September 2023: Citizens handled 1.4 million policies.
January 2024: Tracking began for company rate decrease filings.
August 31, 2026: Citizens had 266,231 policies in place.
September 18, 2026: Citizens policy count fell to 255,000.

Money Landscape

This contraction of state-backed coverage marks a significant shift from the peak levels seen in 2012. It follows a period of intense volatility in the Florida insurance market that necessitated legislative intervention to mitigate risk.

Homeowners may find more competitive options as private firms absorb policies that meet state-mandated pricing thresholds. You should speak with a qualified professional to evaluate if your current provider's rates align with these broader market shifts.

The takeaway

The insurance market in Florida has shown signs of stability as litigation costs drop and private insurers become more active. Watch for future rate filings from your provider and consider reviewing your policy terms with a qualified professional.