Florida homeowners continue to face some of the highest insurance premiums in the country—a reality driven by frequent hurricanes and rising litigation costs. But former state Sen. Jeff Brandes believes the tide may be turning.

During a recent appearance on The Florida Roundup, Brandes, who now chairs a newly launched insurance company, said Florida’s property insurance market is showing signs of improvement. Still, he warned that some proposals from lawmakers this past session could undo recent progress.

Brandes criticized certain legislative ideas that he said would reverse reforms made in 2022 and 2023, particularly those aimed at curbing costly legal battles. One example was the repeal of Florida’s “one-way attorney fee” statute, which previously required insurers to cover a policyholder’s legal fees in claims disputes.

“Florida had just 8% of the nation’s property insurance claims, but 80% of the litigation,” Brandes said. “You can’t be the most hurricane-prone state and the most litigious state and expect low property insurance rates. The math just doesn’t work.”

According to Brandes, legal costs—not natural disasters—have been the main driver behind rising premiums.

“You can model hurricanes. You can’t model litigation,” he said. “Insurance companies didn’t fear the storm damage—they feared the lawsuits that followed.”

Why Brandes Believes the Market Is Stabilizing

While rate hikes have not stopped, Brandes said the pace of increases has slowed. One key reason: more competition.

Since 2022, 13 new insurance companies have entered the Florida market, including Patriot Select Property and Casualty Insurance, the company Brandes now leads. It marks a level of interest in the state that Brandes says hasn’t been seen in years.

Patriot Select is starting with HO-3 policies, which are standard for single-family homeowners, targeting properties valued between $250,000 and $2.5 million. While roof requirements will apply, details haven’t been released yet.

“There’s plenty of room for growth and competition,” Brandes said. “And that’s what will ultimately drive down prices in Florida.”

He also pointed to encouraging changes at Citizens Property Insurance—the state’s insurer of last resort. The number of policies has fallen significantly, from 1.4 million in 2022 to an expected 650,000 or fewer by year’s end. That’s a positive sign, Brandes said, indicating that more homeowners are finding coverage in the private market.

The Case for State-Licensed Carriers

Brandes also urged Floridians to choose admitted carriers—insurance providers that are licensed and regulated by the state—over Excess and Surplus (E&S) carriers, which operate outside many of Florida’s insurance rules.

If an admitted carrier fails, the Florida Insurance Guarantee Association (FIGA) can help pay part of the claim. That safety net doesn’t exist for policyholders with E&S carriers.

“If an E&S carrier goes bankrupt, there’s essentially no protection for the consumer,” Brandes said. “The state deserves carriers with deep Florida experience and oversight.”

Looking Ahead: Hope With Caution

Brandes said if Florida can avoid major storms this year, rates could stabilize or even decline. But he also noted that premiums may still rise due to higher home values and construction costs.

“We don’t know what’s going to happen with tariffs or labor shortages,” he said. “Insurance is a unique product because companies don’t always know what their cost of goods sold will be.”

Despite the uncertainties, Brandes remains optimistic: “The market is improving. Things are getting better in Florida—and let’s just hope we don’t see a storm this year.”

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