Florida's homeowners' market has always been about dire predictions or celebratory resurrections. Hurricane seasons such as those of 2004 and 2005, which saw eight hurricanes impact the state at a cost of $37 billion, naturally make insurers wary of placing their capital in the state. But the industry has always had a short memory; it only takes a few years without storms before executives in boardrooms around the state and country decide to return to the market. After all, even though Florida is at greater risk for hurricane losses than other states, it is still the land of plenty. The market is large, diverse, and lucrative, even with the current pressure to reduce rates.

Right now, there are several important factors that favor insurers that are looking to invest in the market. For one, insurers are taking advantage of a private reinsurance market that has plenty of capacity, which has led to a significant decrease in reinsurance premiums. And then there are the steps taken by the state to encourage investors to enter the market. Lawmakers doubled the Florida Hurricane Catastrophe Fund's single-season capacity from $16 billion to $28 billion and offered additional coverage at prices well below the private market.

Then there was the creation of the Capital Build-Up Program that offers up to $25 million in matching funds to any company willing to write business in the state. Thirteen carriers have taken advantage of the program, and they are offering policies to homeowners, mobile homeowners, and condominium units in every county around the state. The plan is one reason why the Citizens Property Insurance Corporation's population has remained stable at around 1.25 million policies, despite lawmakers rolling back rates to make it competitive with the private market.