Jordan Feldman, Head of the Real Estate Investment Division at USI Insurance Services, said that legal reforms and rising market competition are contributing to a reduction in both litigation and insurance costs in Florida. This statement was made on LinkedIn.
“Florida’s worst-in-the-nation litigation rate for property insurance is starting to change,” said Feldman, Head of Real Estate Investment Division, according to LinkedIn. “In 2019, Florida made up an astonishing 76% of all U.S. homeowner insurance claims that led to lawsuits, even though the state made up only 8% of all claims. More recently some reforms to state laws have reportedly led litigation to plummet 40%. Florida’s insurance rates are dropping at the fastest rate in the nation.”
According to Florida Politics, in 2019, Florida homeowners were responsible for over 76% of all homeowners’ litigation in the United States, despite representing only 8% of all homeowners’ insurance claims. This disproportionate burden significantly impacted the state’s insurance market, leading to increased premiums and financial strain on insurers, including reciprocal insurance exchanges. The high litigation rates prompted calls for legislative reforms to stabilize the market and reduce legal costs for insurers and policyholders alike.
Worth Insurance reported that recent tort reforms in Florida, including House Bill 837, have led to a 30% decline in property insurance litigation, easing legal costs for insurers. This reduction has improved the financial performance of reciprocal insurers—member-owned entities where policyholders share financial risks. The reforms have contributed to a more stable insurance market, benefiting both insurers and policyholders through reduced legal expenses and potentially lower premiums.
As of May 2024, the Florida Office of Insurance Regulation reported that ten property insurance companies filed for a zero percent increase in their annual rate filings, with at least eight companies filing for rate decreases effective in 2024. This trend indicates a stabilizing insurance market with increased competition and improved financial conditions for insurers, including reciprocal exchanges. The rate filings suggest that policyholders may experience relief from previously escalating insurance premiums.
Feldman serves as the Head of the Real Estate Investment Division at USI Insurance Services, specializing in providing insurance and risk management solutions for real estate investments. With a background in property and casualty insurance, he focuses on developing strategies that address the unique challenges of the real estate sector, including navigating the complexities of reciprocal insurance arrangements. His expertise includes analyzing market trends and legislative changes to inform clients on optimizing their insurance portfolios.
