Florida Insurance Premiums Dropped Nearly $3 Billion in 2025 — What Orlando Rental Owners Should Do Next

For most of the past five years, the fastest-growing expense on an Orlando or Kissimmee rental property wasn't the mortgage or the roof — it was the insurance bill. New data suggests that pressure is finally letting up.

A report commissioned by the American Property Casualty Insurance Association, titled Florida's Legal Reforms: Lower Insurance Costs and Less Litigation, found that Floridians collectively paid close to $3 billion less for home and auto coverage in 2025 than they did the year before. That is a sharp reversal from 2022, when Florida carried the highest average home and auto insurance costs in the country.

On the property side, the report found homeowners paid roughly $1.29 billion less in 2025 — about a 7% decline. Just as telling is what happened to rates themselves: the average rate change came in below 1%, compared with 9.6% back in 2023. Auto coverage saw an even bigger dollar drop, about $1.7 billion, with average rates falling 4.1%.

The explanation traces back to the litigation reforms Florida lawmakers passed in 2022 and 2023, which limited attorney fees in property claims disputes and ended assignment-of-benefits arrangements. As lawsuits fell, carriers came back. Twenty companies started writing coverage in Florida, bringing more than $850 million in fresh capital into the state. Meanwhile, Citizens Property Insurance — the state-backed insurer of last resort — saw its share of total insured value fall from 15% in 2023 to just 3% in 2025. Insurers also returned $211 million to policyholders in dividends last year, 43% more than the prior year. An APCIA representative summarized the trend simply: "litigation is down, competition is increasing."

So what should a Central Florida property owner actually do with this information? First, stop treating your renewal notice as the market price. With twenty new carriers competing for business, the quote you accepted in 2023 is very likely no longer the best available. Ask your agent to re-shop the policy rather than auto-renewing.

Second, if you're still on a Citizens policy, expect takeout offers and evaluate them carefully — coverage terms, not just premium, deserve a close read. Third, make sure your wind mitigation inspection is current; roof age and opening protection still drive Florida pricing more than almost anything else.

One caution: these are statewide averages. Inland Orange and Osceola County properties have generally fared better than coastal ones, rebuilding costs remain elevated, and a severe hurricane season could interrupt the trend. Relief is real, but it isn't guaranteed to be permanent — which makes this a good year to shop aggressively rather than assume savings will find you.