Sailing Through Florida: Sun, Sand, and Severe Weather

Get ready for an exciting road trip through Florida. We'll explore amusement parks, relax in the Keys, watch cruise ships departing from Hollywood Beach, soak up the atmosphere of South Beach, and gain insight into the insurance landscape of the Sunshine State. But buckle up because parts of our journey will involve crossing flooded roads, navigating downed trees, and enduring extreme heat as we encounter challenges like hurricanes, droughts, and even uninsured drivers.

Let’s head south on US-1 from Miami to Key West. But first, let's stop for a Cuban sandwich right here in Little Havana. This city is known for its incredible cuisine and vibrant culture.

Its growth reflects a broader trend for the entire state. Florida's population jumped by over 8% from 2020 to 2024, making it the fastest-growing state during that time. Despite the challenges that may arise, Florida clearly has a strong appeal.

Risks on the Turnpike: Hurricanes, Drought, High Jury Awards, and Uninsured Drivers

As we head toward Key Largo, we get stuck in traffic. We might as well pull over in the self-proclaimed Diving Capital of the World and explore John Pennekamp Coral Reef State Park, the country’s first undersea park.

As we navigate Florida’s risk landscape, the waters ahead are choppy and include more than hurricane-driven storm surge. From wildfire threats sparked by drought to liability challenges, we’ll need to monitor our air as we move through this state’s insurance terrain.

Hurricanes

Thankfully, the water is calm right now.

The 2025 Atlantic hurricane season, which typically runs from June 1 to November 30, was notably quiet, with no hurricanes making landfall in Florida or the continental United States. Similarly, the preiod from 2006 to 2015 was also relatively calm, as no hurricanes struck Florida during those years. Inactivity during hurricane seasons is not uncommon for the state. Experts say that, over the past 75 years one in every five seasons has been quiet. However, this isn’t a trend or a reason to assume that 2026 will follow suit.

According to research by our partner company, Guy Carpenter, the likelihood of a $10 billion or greater loss for Florida and the Eastern U.S. coast during the neutral phase of the El Niño-Southern Oscillation (ENSO) is only 16%, compared to 43% during La Niña conditions. The 2025 season was largely neutral and ended in a weak La Niña phase.

Our in-house Chief Meteorologist, Jason Brewer, noted that 2025 recorded 13 named storms, five hurricanes, and four major hurricanes. “What stands out to me is that the number of major hurricanes was slightly above average. In fact, there were three Category 5 hurricanes. The only time we’ve had three or more Category 5 hurricanes in one season was during the hyperactive 2005 season, which included Hurricanes Katrina and Wilma.”

As ocean water warms, the number of storms fluctuates from season to season, but their intensity tends to rise. Brewer says five of the six seasons on record that have produced two or more Category 5 hurricanes have occurred in the last 20 years.  

Looking ahead to 2026, indications suggest a shift from the current La Niña to a neutral pattern, with the possibility that El Niño could become a factor. However, Brewer stresses, “We shouldn’t become complacent and assume that this means we’re guaranteed another quiet season without U.S. landfalls. One storm that bucks the trend is what we prepare for and hopefully never have to experience.

Florida is still reeling and recovering from Hurricanes Milton and Helene, which caused widespread flooding and generated over 80,000 claims under the National Flood Insurance Program (NFIP). Many homeowners have completed initial remediation but are struggling to obtain the necessary permits for further repairs.

Wildfires

As we drift past 70 square nautical miles of underwater terrain and impressive coral reefs, we come up for air. But instead of being greeted by blue sea and blue sky, we cough from smoke blowing in from the drought-prone parts of the state.

Southwest Florida’s Gulf Coast and the Panhandle have experienced moderate to worsening drought, with some areas classified as “severe.” Even the South Florida Coast, known for afternoon storms, is expected to remain in drought through 2026. In anticipation of wildfires, the region has issued burn bans, which are expected to remain in place for much of 2026.

Liability

We swim back to shore and set out toward Islamorada to find clear air and try our luck at sport fishing. We pull into the marina to meet our charter boat, but find the shop is not yet open. We mill around and catch sight of a newspaper stand by the shop; it reads, “The fallout from nuclear verdicts.”

The Sunshine State could have easily been called the nuclear verdict state in 2023, but since then, tort reform efforts have helped bring jury award amounts down. Nuclear verdicts refer to exceptionally large jury awards, often exceeding $10 million. Still, Florida remains seventh in the nation for nuclear verdicts, and liability concerns persist for residents of the state.

We decide it’s not worth the wait and head back to our car. As we back out of the parking space, we collide with a white Toyota RAV4 driving behind us. This trip is not going well at all. Making matters worse, 20% of drivers in Florida are uninsured, and 38% are underinsured. That risk is passed on to insured motorists, with policyholders facing higher premiums. Collectively, insured motorists paid $16 billion for uninsured or underinsured motorists.

Thankfully, it’s just a fender bender, and we both have insurance. We wrap things up and get back on the road toward Marathon Key, a little worse for the wear.

Avoiding the “Potholes” of Rising Prices, High Rates, and Liability Concerns

As we travel along US-1, we encounter challenges such as rising home prices, shifting market trends, evolving risk factors, and a high percentage of uninsured drivers on the road.

Home prices and insurance rates in the Sunshine State

Florida home prices could increase by 7-9% in 2026 under Governor Ron DeSantis' plan to eliminate property taxes. This move could benefit existing homeowners and potentially counter the cooling trend seen in much of the state. 

Data from mid-2025 shows that home prices in some Florida markets, such as Cape Coral-Fort Myers, are declining. This trend could spread to other cities, including The Villages, Lakeland, and Palm Bay. Notably, Miami is an exception, with prices there continuing to rise.

One reason for the broader cooling trend may be homeowners' concerns about hurricane risk, rising insurance rates, and high premiums.

In October 2024, Hurricane Milton brought extensive tornado activity to Florida, including tornadoes in Palm Beach Gardens that damaged 318 homes, destroyed 12, and demolished a Publix grocery store. Recovery efforts have taken nearly a year to restore the area to its pre-loss condition.

Florida has some of the highest home insurance premiums in the United States, with average rates increasing nearly 60% from 2015 to 2023. This steep increase has affected buyer demand and home prices in the state.

In short, this has made it harder to find affordable home insurance options, as some private insurance companies have reduced their business in Florida or left the state entirely. This often leaves Floridians with higher premiums or pushes them from the admitted to the non-admitted market, including exploring Citizen Property Insurance (Citizen), an insurer of last resort.

However, our team on the ground is seeing carriers start to relax guidelines and create space in the admitted marketplace, indicating a slight softening in the market. Citizen reduced its policy count from 1.4 million to 482,570 this year as market conditions improved and plans to continue issuing “takeout offers” and reducing policy counts in 2026. Additionally, multiple admitted carriers have announced rate decreases in 2025, a trend Floridians would welcome continuing in 2026.

In some cases, high-net-worth individuals are opting to self-insure specific perils, including wind and hail, additional living expenses, and sinkholes.

Auto Insurance

Florida is ranked third on the list of states with the highest auto insurance rates in the nation. This is partly due to the high percentage (15.9%) of uninsured drivers on the state’s roadways. That cost is then passed on to insured drivers, who bear the burden. To manage these costs, our team is seeing clients willing to give up certain coverages to lower their premiums.

However, some relief is in sight from the auto insurance rate increases the state has seen over the past three years. New laws aimed at preventing abuse and fraud, which went into effect recently, have resulted in savings for insurers and contributed to a 6.5% decrease in rates for Floridians in 2025.

Other trends we are seeing include coastal residents purchasing flood insurance for their cars, including hybrids and electric vehicles. Additionally, more golf carts and low-speed vehicles are being driven in both non-gated and non-golf course communities. They have become a mode of transportation for residents in communities like The Villages in Florida.

Liability Caution Lights

Securing higher liability limits is becoming increasingly difficult, as our team in the state is seeing more insurance carriers take a cautious approach, likely due to an increase in claims that exceed excess coverage. This, in turn, makes it especially challenging to obtain umbrella policies.

Finally, the highway ahead is clear. We cross the Seven Mile Bridge. With nothing but water on either side, this is quintessential Florida.

Legislative reforms pave the way for insurance stability and growth

Sombrero Beach beckons. It is considered one of the best beaches in the state and a true gem. It's the perfect spot for us to lay out our beach towels and look forward to the upcoming year. Many developments are underway that could make Florida an even more appealing place for homeowners and insurers alike.

Recent legislation in Florida, particularly the significant tort reforms enacted in 2023, has begun to pave the way for stabilizing insurance rates and creating a more favorable environment for insurers in the Sunshine State. As a result, 14 new insurance companies are now able to enter and operate in the state. This influx of competition is contributing to lower premiums and slowing the rate of increase for property and wind insurance.

Additionally, the Florida Office of Insurance Regulation (OIR) imposed fines on insurers for mishandling claims related to Hurricane Ian in 2022 and Hurricane Idalia in 2023.

Last year, House Bill 5013 was enacted, further supporting these improvements.

• House Bill 5013 ends a state-backed reinsurance program and reduces measures aimed at scaling back 2022 initiatives designed to support Florida property insurers amid rising claims defense costs and reinsurance rates, potentially increasing demand for private reinsurance coverage.
• SB 724, also known as the Fallen Tree Act, would make property owners liable for damage caused by trees or shrubs on their property when they fall on neighboring property. If passed, this bill would shift storm liability.

Looking forward to the January 2026 legislative session, 35 bills are slated to address issues such as property insurance rate transparency, regulatory oversight, claims dispute resolution, liability damages for negligent death, clarifications regarding condo association insurance, standards for attorney fees, and reforms to the Personal Injury Protection system.

Resiliency to Stay on Course for 2026

We’ve arrived at our destination: Key West. As we stroll down Duval Street, surrounded by vibrant live music and open-air bars, it’s easy to forget the need for future planning. However, even if we’re fortunate enough to avoid a landfalling hurricane again in 2026  and the insurance market continues to soften, it’s crucial for Florida homeowners to build resilience into their most valuable asset: their home.

In Florida, this means being as prepared as possible to face perils such as hurricanes, high winds, torrential downpours, and flooding. Here are three high-level tips:

1. Demand ‘peak’ performance from your roof. Did you know that when wind whooshes over a roof, it creates significant suction that could actually lift it off? That’s why it’s important for your roof to stand strong against those forces and protect your home. Consider upgrading your roof if it is over 15 years old. Install wind-resistant shingles, ensure strong roof-to-wall attachments are in place, and add a Secondary Water Resistance Barrier (SWR) to further enhance your roof’s performance during a storm. Learn more about how your roof could help you weather the storm.

2. Wind-rated wins. Install wind-rated windows, doors, and garage doors, even if it’s not required in your area. Impact-rated garage doors cost more but add a level of resiliency and strength that is otherwise lost. For details on what to look for, review our guide. As an added bonus, upgrading to impact-rated windows and doors may also lower electric costs, improve cooling efficiency, and provide better sound insulation.

3. Fight flooding. Floodproof your home by installing flood barriers or panels that mayhelp prevent water intrusion during storms. In some cases, it may be necessary to elevate your home above the floodplain to ensure its long-term insurability. If you are considering buying a new home, look for communities with strong flood management plans or resiliency measures built in. You’ll also want to install automatic water shut-off devices, which could help prevent or mitigate losses from burst pipes or leaks.

In some drought-prone areas of the state, you may also want to consider hardening your home. You can learn more about these and all the tips outlined above in our risk mitigation guide or reach out for personalized support.

Now that we’ve reached the southernmost point of the continental U.S., it’s time to snap a photo at the Southernmost Point Buoy to mark the end of our insurance road trip, which has prepared us for the year ahead.

Your Trusted Driver: The Benefits of Working with a Broker

Navigating Florida’s complex insurance market requires more than just obtaining a policy; it requires an experienced and trusted “driver.” Our team of knowledgeable brokers, who live and work in the Sunshine State, understands the unique “roadblocks” associated with Florida—from hurricanes to rising liability concerns. Recent legislative reforms have increased the number of insurers on the state’s insurance roadways, making now a good time to work with our team to access multiple insurers and find coverage that fits your needs and budget. We’re here to provide guidance on resilience and, if necessary, advocate for you during the claims recovery process. Reach out to learn how to work with us or to schedule a personalized Florida-specific risk review.