What's Happening?
The Florida Surplus Lines Service Office (FSLSO) reported mixed trends in premiums and policy counts for Coverage A (dwelling) on HO-3 policies. Premiums for lower-tier values ($100,000 to $300,000) decreased
by 8% from 2024 to 2025, while premiums for higher-tier values ($1 million to $5 million) dropped by 6%. However, premiums for mid-range values ($300,000 to $500,000) increased by over 22%. Overall, premiums for all Coverage A values rose by 5%, totaling more than $666 million. The report also noted a significant increase in HO-3 policy counts for higher value tiers, with a 32% rise for values between $300,000 and $1 million. Despite these changes, the total premium for all types of surplus lines coverage in Florida increased by just 2% in 2025, reaching over $17 billion.
Why It's Important?
The trends in Florida's surplus lines market reflect broader dynamics in the state's insurance landscape, particularly in response to non-standard risks and complex underwriting needs. The decrease in premiums for lower and higher-tier values suggests increased competition and potential stabilization in certain segments. However, the rise in premiums for mid-range values indicates ongoing challenges in pricing and risk assessment. The growth in policy counts for higher value tiers highlights a shift in consumer behavior, with more homeowners seeking surplus lines coverage as an alternative to the primary market. These developments have implications for insurers, regulators, and policyholders, as they navigate the evolving insurance environment in Florida.
