Florida Property Insurance Companies are Profiting. Do homeowners get a refund?
Despite the fact that Florida homeowners pay some of the highest premiums in the country, it is unlikely they will be getting a refund from insurers in the state even as the insurance industry moves into profitability after state reforms start to have an impact.
Insurance reforms which were meant to reduce lawsuits against insurance companies were put in place in 2022 and 2023 and according to industry leaders they are starting to work.
The number of lawsuits filed against insurers dropped 22% in the first half of 2025 and insurers in the state reported a combined net profit of $944 million in 2024 which is a huge leap from the $292 million they made in 2023. In 2022 the insurance industry in Florida lost $741 million.
As the industry turns around, 29 insurers have filed to reduce rates, and 44 insurers left their rates untouched since January of 2024.
Old Law Prevents Refunds
Florida put a law in place during their insurance crisis in 2004 and 2005 after eight hurricanes struck the state that requires property insurers to refund any excess profit. While that may make it sound like homeowners are due for a refund, the law was written in a way that allows insurers to avoid ever having to refund profits.
The law states that the insurance company must post sustained underwriting profits over a 10-year period. Due to the fact that most insurers make their profits on investment income, the law will never kick in to require a refund.
“The insurance industry only agreed to [the excess profit provision] because they knew that they would never have to pay anything out under it,” said Steve Geller, a plaintiff attorney and Democrat who represented parts of South Florida in the state Senate when the law was enacted in 2007 in a recent Sun Sentinel article. “They shoot for a 0% underwriting gain and make their money on investment income.”
As an example of how insurers can claim underwriting losses while still reporting a profit, Universal Property and Casualty reported a net profit of $58.9 million last year, but lost money on its core insurance business. It generated profits from investments and services offered. Despite making a profit overall, the average statewide premium charged by Universal increased by 42% from 2022 to 2025.
While homeowners shouldn’t expect a refund anytime soon industry expert claim that competition in the insurance marketplace will lead to lower prices. Security First Insurance chairman and CEO Locke Burt, predicts that the entry of 15 new property insurers will lead to insurance costs that are as low as they can get. “In a free market that’s relatively easy to enter, competition removes excess profit,” he said in the Sun Sentinel article.
Lisa Miller, a former deputy insurance commissioner in Florida who now runs a consulting business, agreed that rates will be coming down. “Rates are going to come down, absolutely,” she said in the Sun Sentinel article. “It’s competition. It’s stable reinsurance rates. The market’s soft. I’m very encouraged.”
Democrat state lawmaker Rep. Anna Eskamani, disagrees and believes that insurance companies should be required to issue refunds to policyholders.
“Any law forbidding an insurance company from earning an excess profit is meaningless if the company can dodge it just by moving money from one corporate pocket to another,” Eskamani, who represents parts of the Orlando region, said in the Sun Sentinel article. “We can and should put a stop to these financial shell games. All it takes is a governor and more lawmakers willing to prioritize affordable reliable insurance for Floridians over bonuses and payouts for insurance executives and investors.”
“It is advisable for consumers to engage in meaningful dialog with their agents annually, at minimum, to discuss their insurance needs and see what options are available to them, for the best price, because their options are increasing,” she advised in the Sun Sentinel article.
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