UPDATE: Florida has just approved two new property insurance companies, marking a significant turnaround for homeowners in the state. Viceroy Preferred Insurance and Vision Insurance Exchange are set to provide much-needed options, as the state’s insurance market rebounds from a near collapse.
This development comes after lawmakers enacted major reforms targeting excessive litigation and fraud in the insurance sector. The addition of these companies brings the total number of private insurers in Florida to 16 since crucial legislative changes were implemented in 2022 and 2023.
Florida’s property insurance market faced a dire crisis just three years ago, driven by an increase in natural disasters, rampant fraud, and costly litigation that made it difficult for insurers to operate. As a result, many homeowners were left with limited coverage options, often relying on Citizens, the state-backed insurer, which ballooned to alarming levels.
“Florida’s property insurance market has stabilized due to legislative reform that addressed the state’s man-made risk crisis,” said Mark Friedlander from the Insurance Information Institute. The changes, particularly the elimination of one-way attorney fees, have allowed new companies like Viceroy and Vision to enter the market and operate profitably.
Citizens Insurance is also shedding policies at an unprecedented rate, with fewer than 800,000 policies reported in June 2024—the lowest since 2021. This depopulation effort aims to enhance competition among private insurers, which could help bring rates down. However, homeowners still face an average annual insurance cost of $5,735, representing about 7.82 percent of their income.
Viceroy, affiliated with Monarch National Insurance, plans to focus on Florida’s east coast and will not take on policies from Citizens. In contrast, Vision will start transitioning Citizens’ policyholders to private coverage starting in November 2024, helping to alleviate the burden on state resources.
“Offering homeowners another option and additional capacity is crucial,” stated Kerrie A. Ruland, senior vice president of HP Managing Agency, which operates Viceroy. Vision will provide coverage statewide, except in Monroe County, enhancing accessibility for homeowners.
Concerns remain, particularly for those along Florida’s coast, where insurance rates are still uncomfortably high. “While we’re seeing progress, rates remain a significant issue,” noted Natalie Todoroff, a Bankrate Insurance Expert.
As Florida’s insurance landscape evolves, homeowners are urged to stay informed about their options as the industry continues to recover. The commitment to reform and the entrance of new insurers signal a hopeful future for many residents seeking affordable and reliable coverage.
This is a developing story; stay tuned for further updates as the situation progresses.