Florida's Insurance Lawsuits Just Got Cut Nearly in Half. Here's What Changes for Broward Buyers and Sellers

For three years, I have watched deals slow down at the exact same word. Insurance.

A buyer falls in love with a house. Then the insurance quote comes back higher than expected, or a carrier declines the property outright because of roof age or claims history, and the whole transaction stalls while everyone scrambles for a new policy. I have sat across the table from clients who walked away from homes they wanted because the insurance math did not work.

New data suggests that pattern may finally be easing.

According to the Florida Office of Insurance Regulation, cited in Insurance Journal, Florida's share of the nation's homeowners insurance lawsuits has fallen sharply since state lawmakers overhauled the claims litigation system. In 2020, Florida accounted for roughly 9% of the country's homeowners insurance claims and more than 79% of its claims lawsuits. By 2025, the state's claims share had dropped to about 5%, while its lawsuit share fell to around 41%. The lawsuit share is still disproportionate to the claims share, but it is nearly half what it was five years ago.

The reforms behind that shift passed in 2022 and 2023. They limited attorney fees in property insurance lawsuits and stopped policyholders from signing over their insurance benefits directly to contractors, a practice called assignment of benefits that fueled a wave of litigation over minor repairs. Since those reforms took effect, at least 20 new insurance carriers have entered the Florida market. Several existing insurers have filed for rate decreases. Citizens Property Insurance, the state-run insurer of last resort that has carried an outsized share of Florida's riskiest coverage, had an average 8.8% rate cut approved this year.

None of this means your premium is about to drop next renewal. Coverage cost still depends heavily on the property itself: the age and material of the roof, the location relative to flood zones and coastline, the claims history, and the individual carrier's underwriting rules. A newer market with more carriers competing for business is not the same as cheap insurance across the board.

What it does mean, practically, for anyone buying or selling in Broward right now: more carriers means more quotes to compare, which means more room to negotiate a policy that actually pencils. Fewer lawsuits clogging the system means claims and renewals move faster, which matters when a lender is waiting on proof of insurability to clear a mortgage. And a carrier market that looks more stable to reinsurers and rating agencies tends to keep expanding rather than pulling back, which is the opposite of what happened here for most of the last decade.

I have watched this market long enough to know one data point does not undo years of hard lessons. Homeowners who lived through nonrenewals, special assessments tied to insurance costs, or a carrier going insolvent are not going to relax because of a statewide statistic. That skepticism is earned. But if you are weighing whether to list a home you have been holding onto because you worried insurance would scare off buyers, or whether now is the time to buy instead of waiting another year for the market to feel safer, this is the kind of shift worth knowing about before you decide.

If you want a read on what your specific property's insurance picture looks like, or how it might affect a sale or purchase you are considering, reach out. I am happy to walk through it with you, no pressure attached.

Roger Averbuj, Broker | Prestige Heritage Realty | (954) 663-8461

Source: Florida property insurance lawsuits decline, Florida Realtors, August 5, 2026