After years of soaring premiums and a shrinking insurance market, Florida homeowners may finally be seeing signs of relief.

More insurance companies are writing new policies across the state, dozens have requested rate reductions, and fewer homeowners are relying on the state's insurer of last resort. Industry experts say a series of legislative reforms and a more stable market are helping restore competition, although Florida remains the most expensive state in the nation for homeowners insurance.

For homeowners like Gabriella Crespo, any improvement is welcome.

Crespo pays about $7,000 a year for homeowners insurance, even after switching carriers to find a lower premium.

"I understand, you know, flood, wind, hazard, whatnot, but still, it's a lot of money for the benefits that we get," Crespo said. "They were like, 'You need to change this, that, the roof, all the windows.' So everything was, 'If you don't, then it's going to be an added fee,'" she said.

According to insurance comparison platform Insurify, Florida continues to have the highest average homeowners insurance premiums in the country, with annual costs hovering around $8,000.

Still, industry experts say conditions are improving compared with just a few years ago.

"We have companies now that were sitting on the sidelines saying they're going to write policies in every part of the state," said Mark Friedlander, senior director of media relations for the Insurance Information Institute. "Typically, South Florida was a very challenging market."

Beginning in 2021, several insurers stopped writing new policies in Florida while others became insolvent, leaving many homeowners with fewer coverage options.

Friedlander said legislative reforms aimed at reducing excessive litigation and insurance fraud have helped stabilize the market and encouraged insurers to expand their business in Florida once again.

Another indicator of the market's recovery is the declining number of homeowners insured through Citizens Property Insurance Corp., Florida's insurer of last resort.

State data show Citizens insured roughly 20% of Florida's residential property market in 2023. Today, that figure has fallen to about 3% of residential properties as more policyholders move back into the private insurance market.

New insurers entering Florida are also using technology to help homeowners reduce their risk and potentially lower their premiums.

Stand Insurance, a startup that recently expanded into Florida, uses artificial intelligence and catastrophe modeling to identify vulnerabilities in a home before major damage occurs.

"We can work with homeowners and actually take a role in making the home safer," said CEO Dan Preston.

The company first launched in California, where it focused on identifying wildfire risks and recommending mitigation projects. Preston said the same approach is now being used in Florida to reduce hurricane-related losses.

Among the improvements that can qualify homeowners for discounts are reinforced roof attachments, including roof clips designed to better secure a home's roof during high winds.

"The most important one that we're working with homeowners on day one is roof reinforcements," Preston said. "That will allow us to offer discounts that can be on the order of 20% to 40%, depending on where the home is."

Stand also offers discounts for installing devices such as automatic water shutoff valves, which can help prevent costly water damage claims.

Along with more insurers expanding in Florida, dozens of insurance companies have filed requests with state regulators to reduce homeowners insurance rates. Homeowners insured through Citizens Property Insurance also received a statewide rate decrease that took effect June 1.

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