NEW FLORIDA P&C LAWS 2026

Florida’s insurance landscape has undergone significant shifts due to a series of legislative reforms enacted between 2023 and early 2026. These laws are primarily designed to stabilize the market by reducing litigation, increasing transparency, and mandating flood coverage. [1, 2, 3, 4]

1. Property & Homeowners Insurance

Recent laws aim to lower premiums by curbing “frivolous” lawsuits and managing the risk of the state-backed “insurer of last resort,” Citizens Property Insurance. [5, 6, 7, 8]

• Mandatory Flood Insurance (Phased Implementation):
  • 2025: Required for homes valued over $500,000.
  • 2026: Required for homes valued over $400,000.
  • 2027: Required for all Citizens policyholders, regardless of location or home value.
• New Resolution Process (HB 459): Effective in 2026, this creates a structured administrative path for disputed claims to be resolved through the Division of Administrative Hearings before going to court.
• Roof Age Protections (HB 815): Starting July 1, 2026, insurers cannot refuse to renew a policy solely based on the age of a roof if it is in good condition.
• Ending “One-Way” Attorney Fees: Legislation has eliminated the rule that required insurers to pay a plaintiff’s legal fees if they lost a case, a move intended to reduce legal costs passed on to consumers.
• Ban on Assignment of Benefits (AOB): Policyholders can no longer sign over their insurance benefits directly to contractors (e.g., roofers or water mitigation companies), which was previously a major driver of fraud. [2, 4, 9, 10, 11]

2. Auto Insurance Changes

Florida is transitioning toward a “fault-based” system to address some of the highest premiums in the country. [12]

• PIP Repeal (Proposed/Scheduled 2026): Legislation (HB 1181) proposes repealing the “No-Fault” Personal Injury Protection (PIP) system by July 1, 2026.
• Mandatory Bodily Injury (BI) Coverage: If the PIP repeal takes effect, drivers will be required to carry minimum BI liability of $25,000 per person and $50,000 per occurrence.
• Rate Reductions: As of early 2026, top auto insurers like GEICO, Progressive, and State Farm have filed for rate decreases averaging 8% to 10% due to these reforms. [13, 14, 15]

3. Specialized & Consumer Protections

• Pet Insurance (HB 655): Effective January 1, 2026, pet insurance is officially classified as “property insurance,” requiring companies to provide clear disclosures on claim formulas and allowing a 30-day “free look” period for full refunds.
• Health Insurance Overpayments (SB 1808): Healthcare providers must now refund patient overpayments within 30 days of identification or face fines.
• Breast Exam Coverage (SB 158): State employee health plans must now cover diagnostic and supplemental breast exams (like MRIs) without co-pays or deductibles. [16, 17, 18, 19]

Current Market Impact (April 2026)

Recent reports from the Florida Office of Insurance Regulation (OIR) indicate that these reforms are beginning to show results: [20, 21]

• Litigation Decline: Property claim litigation dropped by approximately 25% in 2025.
• Rate Relief: In early 2026, several private carriers, including Florida Peninsula, announced statewide rate reductions. [22, 23]

Would you like me to look up specific premium reduction percentages for your current insurance carrier?