Florida is home to millions of people with a population larger than New York’s, making it the third-most populous state in the country. This substantial number of residents means the state also has a large personal and business insurance market.
This same insurance market faced increasing stress from 2022 through 2023. The Insurance Information Institute noted that Florida’s homeowner insurance market has faced many challenges in recent years. However, as of 2025, the number of insurance claims has declined significantly due to legislation reform. Many insurers exited the market in 2022 due to issues of fraud and high claims, but some have slowly started returning to the market in 2025.
- Florida's massive insurance market is under stress, but legislative reforms have significantly reduced claims, stabilizing the market as of 2025.
- The state's high denial rates for homeowners' insurance claims call for vigilance; reforms aim to tackle fraud and insurance company cautiousness.
- Legal considerations are crucial when dealing with delayed or denied claims—understanding your options can prevent further complications.
- For effective guidance in Florida, choosing a knowledgeable attorney can be essential due to complex insurance laws and frequent natural disasters.
If your claim has been delayed, denied or underpaid, understanding these issues can be valuable. It is also important to work with an attorney who understands Florida’s insurance market.
You may be wondering about your options or whether you can sue your insurance company. The answer depends on your insurance policy, your attorney, Florida Law and the situation. Here are three important considerations when deciding whether to take your insurance company to court in Florida.
1. Risk of Natural Disasters is High in Florida
As a Florida homeowner, you’re more likely to run into insurance problems because the state is so prone to natural disasters. Its location, climate and many other factors mean damage from storms and other weather events.
When widespread damage occurs, insurers are bound by their contracts with customers to pay for covered losses. That can include:
- Roof replacements
- Major repairs like mold or interior water damage
- Rebuilding destroyed homes and businesses
This makes it difficult for insurance companies to make money in Florida. However, this increased risk of natural disasters accounts for only part of the larger issue with property insurance in Florida.
Due to the frequency of storms in Florida, insurers have become aggressive about denying claims, underpaying them and blaming property damage on “wear and tear” rather than storms. Between 2020 and 2023, around 30 insurance companies left the state, but as of 2025, 14 new companies had begun operating in Florida. Even if insurers leave, they must pay valid claims as agreed upon under your policy.
If you feel an insurer has treated you unfairly, you may have grounds to challenge their decision.
2. Claims, Denials and Lawsuits Should be Expected
Florida’s insurance system remains under intense pressure and that can affect how your claim is handled. In 2022, The Florida Office of Insurance Regulation reported that Florida accounted for 10% of homeowners claims in the United States. Historically, the state has also represented 79% of all homeowners' insurance lawsuits related to filed claims. This is due to the large gap between claims being made and claims being resolved fairly.
In 2024, Weiss Ratings released a report that stated 46.7% of homeowner cases were denied payment. This number rose 6.7% since 2022. This gives Florida one of the highest denial rates in the country.
While these denial rates are high, lawmakers have introduced reforms to combat fraud, especially against roofing scams and contractor abuse. A common example involves contractors approaching homeowners after a storm, claiming they can secure you a free roof by encouraging you to file an illegitimate damage claim. Practices such as these drive-up insurance premiums and have also led to insurers being stricter and more cautious when reviewing claims.
What does this mean to you?
- Insurance companies will remain on the defensive
- Disputes over roof and water damage are particularly common
- A denial isn’t the end; you can still appeal and dispute the insurer’s decision
3. When Looking for an Attorney – Experience Matters
Insurance laws are complex. Tricky contracts, strict regulations and legal rules influence this field. Nationwide, attorneys in this practice area need in-depth knowledge of relevant laws, similar cases and insurance regulations. Experience handling similar cases is also valuable.
With Florida’s ever-changing property insurance law, knowledge and experience can prove crucial. For homeowners and business owners with legitimate claims, legal action can get complicated amidst fraudulent issues. Common problems such as insurers exiting the Florida market or an insurer becoming more guarded against any claim may come into play.
The Florida legislature has taken action to address some underlying causes of the state’s property insurance crisis, such as two bills set to be voted on in 2026 that would prevent insurers from canceling policies of clients acting in good faith. Activities such as these continue to prove fruitful in the long run, helping to stabilize the market.
Even with reforms, they may not solve the issues you face with your individual claim. This is why working with an experienced insurance attorney in Florida can offer support and guidance throughout the legal process.
If you are looking for legal guidance on any matter, use the Best Lawyers ® Find a Lawyer tool to connect with experienced lawyers ready to assist.
