Florida’s 2025-2026 legislative sessions feature a major wave of proposed insurance reforms aimed at reversing recent “tort reform” measures, increasing carrier transparency, and overhauling auto insurance.
1. Proposed Property Insurance Reforms (2025-2026)
Multiple bills have been introduced to address soaring premiums and perceived “insurer-friendly” laws passed in 2022 and 2023.
- Reinstating Attorney Fees (SB 554 / HB 451): These “rollback” bills seek to reinstate “one-way” attorney fees, which were eliminated in 2023. If passed, homeowners who successfully sue their insurers would again have their legal fees covered by the company.
- Mandatory Transparency (SB 554 / SB 1656): These proposals would require insurers to disclose executive compensation and financial relationships with affiliate companies, specifically targeting concerns that insurers shift profits to affiliates while claiming losses.
- Stricter Claims Handling: SB 554 would mandate written estimates within 7 days of a claim notice and monthly electronic updates for policyholders.
- Human Review of AI (SB 794 / HB 1555): Proposed legislation would require a “qualified human professional” to review and sign off on any claim denial, preventing purely algorithm-driven decisions.
- Citizens Property Insurance (HB 863): A bill passed by the House in early 2026 would allow Citizens Property Insurance policyholders to choose between required arbitration or a jury trial for disputes.
2. Auto Insurance Overhaul
- Repealing No-Fault (PIP) (SB 1256 / HB 1181): Lawmakers are again proposing to eliminate Florida’s mandatory Personal Injury Protection (PIP) system by July 1, 2026.
- New Mandatory Minimums: If PIP is repealed, drivers would instead be required to carry bodily injury liability coverage of $25,000 per person and $50,000 per accident, along with $5,000 in medical payment (MedPay) coverage.
3. Tax Relief and Incentives
- Property Tax Freezes (SJR 1190 / SB 1192): A proposed constitutional amendment would freeze property taxes for 20 years for homeowners who elevate their homes or install significant hurricane-hardening features.
- Reinsurance Backstop (Federal Proposal): Florida Congressman Moskowitz reintroduced the Natural Disaster Risk Reinsurance Act in late 2025 to create a federal catastrophic backstop, which could reduce local rates by an estimated 25%.
Current Market Context (2026)
As of early 2026, several private carriers and Citizens have begun filing for rate decreases (averaging around 8-11%) following a quiet 2025 hurricane season and the impact of previous reforms.
Would you like to check the current status of a specific bill or see how these changes might impact your upcoming renewal?