Florida Governor DeSantis has signed the recently passed legislation from the special session that commenced on December 12, 2022 that addresses many of the reforms needed to help fix Florida's property insurance crisis. The state has been in meltdown mode as a result of excessive and frivolous litigation brought against insurers in the state by contractors and roofers, and the failure of previous legislative actions including those in May of 2022 to stem the tide of insurance companies pulling back on writing policies or exiting the state completely. Insureds' have felt the rise of premiums, shrinking number of insurers writing business, cancellation notices, nonrenewals, and insolvencies.

The lengthy Senate and House bills were nearly identical, and go a long way in assisting insurers with financial stability measures, reinsurance access and relief from excessive and frivolous litigation. Insureds will in time feel the effects of more efficient and timely claims payments by insurers, and premiums will eventually decrease as the market stabilizes. This is a state where seven property insurers have become insolvent in the last two years with several more teetering on the brink for survival. The highlights of the legislation are discussed briefly in this article.

Fifteen percent of the property insurance market has been served by the five largest national insurers, and the rest of the property coverage has been provided by small domestic or regional insurers that are often undercapitalized. Because of the unavailability of coverage,Florida Citizens, the insurer of last resort, has also grown in size.