Category Archives: Homeowners Insurance

Disaster Preparedness, Disaster Resilience, Homeowners Insurance, Roof Condition

Partnering for Resilience: Protecting Homes Through Stronger Roofs

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By Loretta L. Worters, Vice President, Media Relations, Triple-I

Roof damage is a leading driver of insured losses and recovery costs. When a roof fails, the damage rarely stops there. Water intrusion can destroy interiors, equipment, inventory, and critical infrastructure, often leading to business interruptions, displacement, and significant financial hardship.

As hurricanes, hailstorms, tornadoes, wildfires, and other disasters become more frequent and costly, strengthening roofs is one of the most effective ways to reduce damage, improve resilience, and support long-term insurance affordability. For homeowners and businesses alike, a resilient roof is the first line of defense against nature’s most destructive forces.

That is why organizations such as the Insurance Institute for Business & Home Safety (IBHS), the Insurance Information Institute (Triple-I), and the U.S. Small Business Administration (SBA) are increasingly aligned around a simple but powerful principle: investment in resilience works.

These organizations bring complementary strengths. IBHS provides scientific research and testing that underpin resilient roofing practices; Triple-I helps consumers, businesses, policymakers, and the media understand the connection between mitigation, risk reduction, and insurance affordability; and SBA supports small-business preparedness, resilience, and recovery through financing, technical assistance, and disaster assistance programs. Working together, they help translate research into action and encourage broader adoption of proven roof mitigation strategies.

Small improvements make a difference

IBHS research has consistently shown that relatively modest roof upgrades can dramatically reduce storm damage and insurance losses. Improvements like stronger roof deck attachments, sealed roof decks, impact-resistant roofing materials, enhanced edge protection, and improved water barriers help buildings better withstand severe weather. These upgrades are often most cost-effective when incorporated into roof replacement.

One of the most successful resilience initiatives is IBHS’s FORTIFIED™ program, a voluntary construction and re-roofing standard designed to strengthen buildings against severe weather. By enhancing roof performance and reducing the risk of water intrusion, FORTIFIED™ standards help close the gap between minimum building-code requirements and true resilience. As evidence of their effectiveness grows, more insurers and communities are embracing these standards to reduce losses and speed recovery after disasters.

Triple-I helps consumers and policymakers understand that insurance affordability is increasingly linked to reducing preventable losses before disasters occur, while highlighting the economic benefits of resilience investments. Through Triple-I’s educational outreach and resources, property owners can make more informed decisions about protecting their homes and businesses.

Small businesses at risk

Small businesses are especially vulnerable to roof-related losses. A severe storm can interrupt operations for weeks or months, damaging inventory, equipment, technology systems, and customer relationships. This is where SBA can play a transformative role. Financing options, resilience-focused partnerships, technical assistance, and mitigation programs can help overcome one of the biggest barriers to adoption: Upfront cost. Investing in stronger roofs is not simply a construction decision—it is an economic resilience strategy that helps businesses remain operational, communities recover faster, and local economies remain stronger after disasters.

Reducing disaster losses requires collaboration across the public and private sectors. Stronger roofs are more than a construction upgrade—they are an investment in economic stability, community resilience, and a more sustainable insurance market. By aligning scientific research, insurance incentives, public education, and financing support, organizations such as IBHS, Triple-I, and SBA can help drive meaningful change. The question is no longer whether mitigation works. The evidence is clear. The next step is creating the awareness, incentives, and financing needed to make resilient construction the norm rather than the exception.

Property owners seeking practical guidance can access Triple-I’s Roof Toolkit, IBHS’s Roofing Roadmaps, and SBA disaster loans, which can be increased by up to 20% to fund mitigation improvements, such as roof upgrades. Borrowers have up to two years from the date of loan approval to request mitigation funding. Together, these resources provide actionable information and financial support to help strengthen roofs and reduce disaster-related losses.

Learn More:

National Roofing Week Infographic: https://www.iii.org/article/infographic-national-roofing-week

Roofing Toolkit: How Your Roof Influences Your Home and Business Insurance

Auto Insurance, Business Insurance, General Liability, Homeowners Insurance, Insurers and the Economy, Market Conditions, Workers Compensation

U.S. P/C Market Records Hard-Earned Decade-Low Combined Ratio

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By William Nibbelin, Head of Industry Data and Actuarial Science, Triple-I 

After years of significant financial strain, the U.S. property/casualty (P/C) insurance industry is showing strong signs of recovery and stabilization. According to the latest Insurance Economics and Underwriting Projections: A Forward View report from Triple-I and Milliman, the industry’s net combined ratio (NCR) reached its lowest level in more than a decade in 2025, reflecting improved underwriting conditions as the sector navigates the tail-end of post-pandemic economic volatility and hyperinflation.

Economic Outlook

While the industry maintains demonstrated resilience, the economic environment signals greater uncertainty. Real GDP growth slowed to 2.0 percent in the first quarter of 2026, while inflation remained above the Federal Reserve’s target at 3.3 percent in March. Triple-I Chief Economist and Data Scientist Michel Léonard, Ph.D., CBE, emphasized the cost drivers behind these results, explaining they “should be viewed in the context of the significant financial strain insurers have faced in recent years.”

“Although conditions have stabilized somewhat, insurers continue to operate in an environment marked by elevated catastrophe risk, higher claims severity, and ongoing economic uncertainty,” Léonard said. “Insurance employment declined 1.8 percent year over year in March, underperforming the broader labor market and reflecting continued weakness in sector employment conditions. Meanwhile, higher energy prices and persistent inflationary pressures continue to strain household and business finances.”

A critical factor for future growth is monetary policy. Forecasts for 2027 and 2028 hinge on the Federal Reserve’s interest rate decisions, with a holding pattern currently in place as the market monitors unemployment rates as a barometer for potential rate cuts.

Personal Lines Underwriting Results

The 2025 recovery was most visible in personal lines, which achieved a dramatic turnaround from supply chain-driven losses following the pandemic.

  • Personal Auto: This segment reported a 2025 NCR of 91.8, a 3.5-point improvement from 2024. Net written premium growth slowed to 4.0 percent, its lowest level since 2021.
  • Homeowners: Despite an active catastrophe year, including the Los Angeles wildfires in the first quarter, underwriting performance improved significantly. The 2025 NCR of 88.1 was the lowest in over a decade, aided by easing replacement cost pressures and prior pricing discipline.

Commercial Lines Underwriting Results

While property lines flourished, certain commercial lines face ongoing challenges:

  • Commercial Auto and General Liability: These are the only major lines with an NCR above 100 in 2025. Jason B. Kurtz, FCAS, MAAA, principal and consulting actuary at Milliman, explained that “litigation pressures and claims severity trends continue to result in elevated loss costs, constraining improvement in these segments despite broader industry strength.”
  • Workers’ Compensation: This line remains a pillar of stability, with projected combined ratios in the low 90s through 2028. For 2025, the preliminary combined ratio is 91, at  “an increase of about 5 points from the prior year,” said Donna Glenn, chief actuary at the National Council on Compensation Insurance (NCCI). Glenn added this change “is primarily due to an increase in the loss and underwriting expense ratios.”

Forward View

Underlying P/C growth for the first half of 2026 is forecast at -3.7 percent, a significant dip from the 1.6 percent growth in 2025. A recovery is anticipated beginning in 2027.

Replacement costs are a primary area of concern for long-term pricing. Triple-I Chief Insurance Officer Patrick Schmid, Ph.D., noted, “replacement costs moderated significantly from their 2022 peak, but our forecasts show them re-accelerating through 2028 and eventually outpacing overall U.S. inflation.”

While property lines have strengthened, Schmid cautioned that “the industry faces a challenging road ahead with elevated catastrophe exposure, economic uncertainty, and persistent claims-cost pressures.”

New Deep-Dive Resource

To provide members with more granular insights, Triple-I has launched State of the Line Issues Briefs, a monthly series focusing on the nuances of individual segments. These deep dives are designed to help members navigate specific strategic planning challenges beyond high-level quarterly forecasts. In an addendum to the briefing, Triple-I shared key findings from these reports.

For the farmowners’ line, analysis revealed the producer price index for commercial machinery repair acts as a high-correlation leading indicator for premium changes. Additionally, a major structural shift was identified in fire and allied lines, where the standard market share dropped from 66.7 percent in 2016 to just 52.7 percent in 2024, as premiums migrated toward the excess and surplus and residual markets.

Affordability, Auto Insurance, Catastrophes, Homeowners Insurance, Legal Environment

Florida Reforms Drive Benefits for Consumers

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By Lewis Nibbelin, Research Writer, Triple-I

Legal system reforms targeting fraud and excess litigation in Florida are helping drive renewed underwriting business and lower premium rates for consumers throughout the state, signaling ongoing improvements in the Sunshine State’s insurance market health, according to an S&P Global Market Intelligence analysis.

Post-reform, nearly 20 new property insurers have entered the Sunshine State and existing carriers have expanded their market share, fueling double-digit growth in direct written premiums for many of the state’s largest insurers in 2025. As policyholders shifted to the private market, policies in force for Citizens Property Insurance Corp. – the state-run insurer of last resort and previously the state’s largest residential insurance writer – dropped by 57.8 percent from 2024.

Premiums for Citizens policyholders fell 43.7 percent, alongside extensive premium reductions for thousands of Florida homeowners and drivers across the property/casualty insurance market. Florida’s top five auto insurance groups, for instance, averaged a more than 6 percent rate reduction through mid-year, accounting for 78 percent of the state’s auto market. These reductions have increased to an average of 8 percent based, on the most recent 2026 regulatory filings.

Claims-related litigation has also plummeted, slashing the market’s defense and cost containment expense ratio to 1.9 percent, S&P reported – a major decline from 8.4 percent in 2022, before the 2022 and 2023 reforms were fully implemented. In dollar terms, 2025 saw $537 million in direct incurred legal defense expenses, down from roughly $792 million the prior year and from $1.6 billion in 2022.

Amid decreasing litigation costs, Florida’s residential property insurers recorded over $2 billion in underwriting gains in 2025, with the state’s homeowners’ market posting its highest net income in more than a decade.

Favorable 2025 results are good news, but it’s important for policyholders and policymakers to remember the sustained, industry-wide reform efforts that underpin Florida’s current stability. Despite their measurable benefits to consumers, the reforms have faced repeated legislative attacks, threatening to undo much of this progress.

Florida’s strong market performance also reflects relatively mild catastrophe activity in 2025, including the absence of any U.S. hurricane landfalls. Though the 2026 Atlantic hurricane season is forecast to be “somewhat below normal,” ongoing caution is essential, as just one significant landfall could threaten recent market growth and leave lasting damage.

Compounding these challenges is Florida’s most severe drought in over 25 years, which has produced nearly 2,000 wildfires in 2026 year-to-date and impacted many areas traditionally considered low risk. With wildfire risks still looming, the shift underscores the dynamic headwinds that imperil the state, necessitating continued legislative support of reforms to keep coverage affordable and available in one of the most complex states to insure.

Learn More:

Legal System Abuse Awareness Campaign Spreads Across U.S.

Lessons for Texas in Florida Legal Reforms

Florida Premiums Drop Amid Post-Reform Stability

Litigation Reform Works: Florida Auto Insurance Premium Rates Declining

New Consumer Guide Highlights Economic Impact of Legal System Abuse and the Need for Reform

Florida Senate Rejects Legal-Reform Challenge

Affordability, Auto Insurance, Homeowners Insurance, Insurers and the Economy, Legal Environment

Illinois Bill Would Hurt Insurers and Customers

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By Jeff Dunsavage, Head of Research Publications and Insights

Senate Bill 1486 – currently moving through the Illinois General Assembly – would unnecessarily burden insurers and hurt the customers it is intended to protect.

“The measure would add new regulatory layers that could impede the accurate pricing of risk while doing nothing to address the underlying causes of rising premiums,” Triple-I said in a recently published Policy Brief. “Premiums are increasing at different rates across the country, reflecting a mix of factors that include climate events, shifting populations, rising costs to repair and replace property, and legal system abuse.”

All these factors drive up the number and the cost of claims and, if not properly addressed, could erode the policyholder surplus insurers are required to keep on hand to pay claims. If surplus declines below levels mandated by regulators, insurers must raise rates or rethink their appetite for writing coverage in riskier states.

Neither option is good for consumers.

If affordability is the goal, the most effective path is cost reduction. Illinois leaders should model the behavior of states that are addressing the root causes of rising insurance premiums – not just treating the symptoms.

The brief also points out that both homeowners’ and personal auto insurance in Illinois is more affordable than the U.S. average, when measured as a ratio of average insurance expenditures to median household income.

Learn More:

Trends and Insights: Illinois (Members-only content)

Illinois Storms Highlight Severe Weather Losses

Triple-I Legal System Abuse Awareness Campaign Enters California, Illinois

Illinois Lawmakers Reject Risk-Based Pricing Challenge

New Illinois Bills Would Harm — Not Help — Auto Policyholders

Catastrophes, Disaster Preparedness, Disaster Resilience, Homeowners Insurance, Hurricane, Roof Condition, Severe Convective Storm, Tornado, Wind

Mississippi Set to Launch Roof Grant Program

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By Lewis Nibbelin, Research Writer, Triple-I

Mississippi recently adopted a program that will offer homeowners grants of up to $10,000 for roofs built to the FORTIFIED™ standard, following in the footsteps of states across the country to mitigate the rising frequency and severity of extreme weather.

Developed by the Insurance Institute for Business & Home Safety (IBHS), the FORTIFIED™ standard can help reduce high wind and hail damage through construction methods like sealing roof decks and anchoring roofs to wall framing using stronger nails. While such standards remain voluntary, many insurers in Mississippi began providing premium discounts for homes that meet the designation, prompting state lawmakers to further incentivize their construction.

The Magnolia State is only the latest to follow Alabama’s lead, which largely pioneered these incentives through its own Strengthen Alabama Homes program, financed by the insurance industry with more than $86 million in grants since 2016. Designed to enhance community resiliency while also lowering insurance rates, completed retrofits earn residents premium discounts ranging from 25 to 55 percent.

Slated to begin accepting applications later this year, Strengthen Mississippi Homes authorizes the state’s insurance department to allocate $15 million a year towards grants and gives the department flexibility in determining grant eligibility as the program rolls out. More than one thousand homes are expected to qualify each year, including in inland areas and along the coast.

Notably, the new grant program builds on the state’s preexisting hurricane-specific mitigation initiative, in part reflecting growing nationwide vulnerability to other perils. While global insured losses fell below average in the first quarter of 2026, Gallagher Re analysis shows that U.S. convective storms were among the largest loss events, including a March tornado outbreak that killed multiple Mississippi residents and caused upwards of a billion dollars in insured damages throughout the Midwestern and Eastern U.S.

Mississippi ranked fourth in the nation for tornado frequency in 2025, at 111 tornadoes, according to data from the National Weather Service. Currently, it ranks second for such activity, at 48.

Modeling what works

Research from the Alabama Department of Insurance, in collaboration with the University of Alabama Center for Insurance Information and Research, has demonstrated the success of Strengthen Alabama Homes. The study found FORTIFIED homes suffered less property damage and fewer insurance claims than homes built using other construction methods when Hurricane Sally made landfall in the state.

Programs modeled on Alabama’s have sprouted throughout the United States, including in coastal Louisiana, North Carolina, and South Carolina. Farther inland, Oklahoma just opened its program statewide after three pilot launches last year, and Kentucky unveiled its $5 million program for the first time last month. Similar efforts are underway in Minnesota after the state established a grant program in 2023, with full implementation expected during 2026. Arkansas’ program also remains under development.

Insurers have long called for boosting roof resilience within and beyond hurricane-prone regions. IBHS research estimates 70 to 90 percent of storm-related insurance claims involve roof damage, meaning roof upgrades can substantially minimize losses and improve market stability, keeping insurance affordable and available for more homeowners. In addition to making homes safer, the study revealed FORTIFIED™ homes sell for nearly 7 percent more than similar homes with non-FORTIFIED™ roofs.

Mounting demand suggests such improvements are gaining traction even beyond state grant programs. An unprecedented 20,000-plus designations were issued in 2025 alone, at a 20 percent increase over the prior year, keeping IBHS on track to reach a nationwide total of 120,000 by the end of 2026.

Learn More:

Resilient Post-Wildfire Rebuilding Pays Off

Convective Storm Losses: Historic 3-Year Streak

Few, High-Powered Storms Defined 2025 Hurricane Season

Storm-Resistant Roof Efforts Gain Ground

Why Roof Resilience Matters More Than Ever

Health & Safety, Homeowners Insurance

Dog-Related Injury Claims on the Rise in 2025

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By Lewis Nibbelin, Research Writer, Triple-I

Insurers paid $1.86 billion in dog-related injury claims in 2025, up by 18.6 percent from 2024, according to research by Triple-I and State Farm.

The total number of dog-bite and related claims was 28,450, a more than 25 percent increase from 2024 and a 57 rise over the past decade. Though the average cost per claim fell to $65,450 – a 5.5 percent decrease from $69,272 in 2024 – costs also remained at a 97 percent rise over the past decade.

California and Florida continued to see the most claims in 2025 from 2024, with more than 2,000 claims in each state. New York filed the highest average cost per claim, at $92,154, followed by Connecticut and California.

According to the American Veterinary Medical Association (AVMA), 45 percent of homes include at least one dog, for a total of approximately 90 million pet dogs in the United States. While most will coexist peacefully with us, dog bites remain a serious public health concern, with more than 4.5 million bites reported each year in the United States.

During National Dog Bite Prevention Week (April 12–18), a coalition of veterinarians, animal behavior experts, and insurance representatives urge the public to understand the risks dog bites pose to people and other pets and the steps required to prevent injuries.

“We’ve seen a 25 percent increase in dog bites in 2025 and yet, most dog bites are preventable. Children are especially vulnerable,” said Janet Ruiz, communications director at Triple-I. “Prevention starts with understanding how dogs communicate and teaching children how to interact with them safely.”

Tips to prevent dog bites

All dogs – even well-trained, gentle dogs – can bite when provoked, especially when eating, sleeping, or caring for puppies. To keep people and pets safe, the National Dog Bite Prevention Week Coalition provides the following tips:

  • Adopt wisely. Not every dog is a perfect match for every family. Choose a dog suited for your lifestyle and household, including other pets.
  • Socialize your dog. Try to expose your dogs to new situations gradually and for short periods of time. Arrange for low-stress interactions and give plenty of praise and rewards for good behavior.
  • Educate yourself in positive training techniques and on the unique needs and behaviors of your dog. Learn the signs that your dog is stressed or uncomfortable and be prepared to advocate for them in all situations.
  • Always supervise children around dogs, even family pets. More than half of all dog-related injuries are to children.
  • Always leash your dog on walks and make sure fences and gates are secure if they spend time in a yard.
  • Keep your pet healthy. Not all illnesses and injuries are obvious, and dogs are more likely to bite if they are sick or in pain. If you haven’t been to the veterinarian in a while, schedule an appointment for a checkup to discuss your dog’s physical and behavioral health.

Pet owners should review their policies with an insurance professional to ensure they have adequate coverage for every pet in the household. Standard homeowners’ and renters’ insurance typically cover dog-bite liability legal expenses up to the liability limits of the policy (usually $100,000 to $300,000), with dog owners responsible for any damages above that amount.

Pet insurance policies can also offer tailored protection for pets from accidents and/or illnesses. While insurers typically do not provide coverage for pre-existing conditions, separate plans may be available for routine preventative care such as vaccines and annual exams.

Learn More:

Spotlight on: Dog Bite Liability

Facts + Statistics: Pet Ownership and Insurance

Liability and Safety Tips for Dog Owners

Tips to Prevent Dog Bites

Disaster Preparedness, Disaster Resilience, Flood Insurance, Floods, Homeowners Insurance, Hurricane

CSU Projects “Somewhat Below Normal” 2026 Hurricane Season

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By Lewis Nibbelin, Research Writer, Triple-I

Colorado State University (CSU) researchers predict a “somewhat below normal” Atlantic hurricane season in their initial 2026 projections, citing the likely development of a robust El Niño event as the primary reason for their forecast of six hurricanes this year.

Led by senior research scientist and Triple-I non-resident scholar Phil Klotzbach, the CSU TC-RAMS team predicts 13 named storms and six hurricanes, two of which will become major hurricanes, or those that reach Category 3 strength or higher. A typical Atlantic season sees 14 named storms, seven hurricanes, and three major hurricanes.

The team’s forecast stems from conditions favorable for a strong El Niño, characterized by above-average ocean temperatures in the central and eastern tropical Pacific. Typical El Niño events “tend to increase winds high up in the atmosphere,” Klotzbach explained, which increases levels of vertical wind shear, or changes in wind speed and direction.

Noting “too much shear tears hurricanes apart,” Klotzbach said that “especially when those events are moderate or strong, they cause very significant impacts in Atlantic hurricane activity.”

A potential record-setting super El Niño on the horizon would suggest impacts far beyond the Atlantic, including extreme heat around the globe. Bringing drought to some regions and flooding to others, the event would help suppress Atlantic hurricane activity while boosting hurricane as well as typhoon risks in the Pacific.

But while “the odds of landfall do go down when the forecast is for below normal activity,” Klotzbach emphasized “there have been significant landfalls in seasons that were somewhat below normal.”

For comparison, the 2025 Atlantic hurricane season produced 13 named storms and five hurricanes. Among those five, four became major, including three Category 5 storms – marking only the second year on record that more than two such storms occurred in the Atlantic Basin. Though none made landfall in the U.S., the Category 5 Hurricane Melissa tied with 1980’s Hurricane Allen for the strongest Atlantic Basin landfall by wind speed on record, causing widespread damage throughout the Caribbean.

While the season runs from June 1 through Nov. 30, now is the ideal time for families and businesses to review their policies with an insurance professional to ensure they have adequate coverage. Many may be unaware they need flood coverage, which is not part of a standard homeowners, condo, renters, or commercial property insurance policy. Flood policies are offered through FEMA’S National Flood Insurance Program and dozens of private insurers.

Homeowners can also upgrade their residences to voluntary standards for wind and heavy rain resilience, as modeled by the Insurance Institute for Business & Home Safety (IBHS). Retrofitting roofs to IBHS FORTIFIED standards, for instance, has demonstrated success in reducing hurricane damage, prompting numerous state governments to begin providing premium discounts to policyholders with completed retrofits.

Learn More:

Few, High-Powered Storms Defined 2025 Hurricane Season

Storm-Resistant Roof Efforts Gain Ground

Jamaica Payout Spotlights Potential of Parametric

Resilience Investment Payoffs Outpace Future Costs More Than 30 Times

Study Touts Payoffs from Alabama Wind Resilience Program

Homeowners Insurance, Insurers and the Economy, Legal Environment

Lessons for Texas in Florida Legal Reforms

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By Lewis Nibbelin, Research Writer, Triple-I

Texas lawmakers struggling to ease the state’s rising insurance costs might find useful insights from Florida’s sustained commitment to legal system abuse reform.

In recent years, Florida led the nation in claim-related litigation, accounting for 72 percent of homeowners’ insurance lawsuits despite representing only 10 percent of homeowners’ claims. This disparity fueled escalating premium rates and a multi-year insurer exodus, steering state lawmakers toward litigation reforms in 2022 and 2023. These reforms, among other things, curtailed one-way attorney fees and assignment of benefits (AOB) for property insurance claims.

Post-reform, dozens of homeowners’ and auto insurers have filed for premium reductions in the state, with some carriers filing cumulative reductions of more than 20 percent. Renewed market competition from the 18 new property insurers in the Sunshine State also facilitated the lowest number of policies administered by Citizens Property Insurance Corp. – the state-run insurer of last resort – in over a decade, at a 50 percent drop last year from 2024 due to successful depopulation to the private market.

Florida’s growing stability reflects a steady decrease in nuclear verdicts (awards of $10 million or more) and claims-related lawsuits, with every month of 2025 reporting a continued decline in newly filed litigation compared to the same month the previous year, the state governor’s office said in a statement.

Texas insurance premiums spiral

Unlike Florida’s trajectory, Texas once set the gold standard for a fair and balanced court system, leading with a series of 1990s and early 2000s reforms that included a $250,000 cap on noneconomic damages in medical malpractice cases. While this legislation remains intact, continued efforts have stalled under repeated legislative challenges to preexisting and proposed reforms.

Last year’s failed state Senate Bill 30, for instance – based on a similar Florida measure – aimed to restrict “phantom damages” by showing juries the actual amount paid for medical bills, rather than an inflated amount determined by a healthcare provider’s list prices. Such amounts contribute to outsized damage awards in the state, which hosted the highest volume of U.S. nuclear verdicts in 2024.

Insurers must account for these added costs when setting rates, leading to a 19 percent increase in average Texas homeowners’ insurance rates in 2024 after a 21 percent spike in 2023, according to Texas Department of Insurance data. Research from the Insurance Research Council – an affiliate of The Institutes, like Triple-I – ranked Texas as the sixth least affordable state for homeowners’ insurance in 2022, with homeowners on average paying 3.13 percent of median household income for coverage.

These trends earned Texas a spot on the American Tort Reform Foundation’s (ATRF) annual “Judicial Hellhole” watch list last year, which highlighted “a wave of industry-targeted lawsuits” within the state. Noting that excess litigation also costs Texans an average of $1,724 each year, ATRF president Tiger Joyce argued “Texas courts are in jeopardy — and it’s hardworking families who pay the price for lawsuit abuse.”

Texas policymakers would do well to build on the state’s track record of meaningful reform and continue pushing for legislation modeled on Florida’s success. Because the Texas Legislature will not meet again until January 2027, the Lone Star State will remain a difficult litigious environment for defendants and insurers alike for some time.

Learn More:

Florida Premiums Drop Amid Post-Reform Stability

Triple-I Legal System Abuse Awareness Campaign Enters California, Illinois

Take Care in Addressing Homeowners’ Premiums, Bloomberg Cautions Policymakers

Litigation Reform Works: Florida Auto Insurance Premium Rates Declining

New Consumer Guide Highlights Economic Impact of Legal System Abuse and the Need for Reform

Triple-I Brief Highlights Legal System Abuse and Attorney Advertising

Auto Insurance, Coastal Property, Homeowners Insurance, Insurers and the Economy, Legal Environment

Florida Premiums Drop Amid Post-Reform Stability

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By Lewis Nibbelin, Research Writer, Triple-I

Legislative reforms to address claim fraud and legal system abuse in Florida have continued to help stabilize the state’s property/casualty insurance market, contributing to premium reductions for thousands of homeowners and drivers, according to the latest Triple-I Issues Brief.

Since the reforms, nearly 20 new property insurers have entered the state and existing carriers have expanded their market share, driving renewed competition in the private market. This shift facilitated the lowest number of policies administered by Citizens Property Insurance Corp. – the state-run insurer of last resort – in over a decade, after a 50 percent drop in policies in force from 2024.

Claims-related litigation has also plummeted, with insurance litigation filings down 23 percent year-over-year from 2023 to 2024. Filings then fell 25 percent during the first half of 2025, compared to the same period in 2024, and remain below pre-2018 levels, as reported by the state governor’s office.

Florida’s reforms were enacted in 2022 and 2023, at a time when the state accounted for 72 percent of the nation’s homeowners claim-related litigation but only 10 percent of homeowners claims. The disparity reflected escalating premium rates and a multi-year insurer exodus, steering state lawmakers toward litigation reforms that, among other things, curtailed one-way attorney fees and assignment of benefits (AOB) for property insurance claims.

Ongoing market momentum

The impact of the reforms is particularly evident in Florida’s auto insurance market, which recorded the lowest personal auto liability loss ratio in the nation – and the state’s lowest in 15 years – in 2025, at 52.5 percent, according to the OIR. The market’s physical damage loss ratio also fell to 49.5 percent, reflecting a steady decline from 112.0 percent in 2022.

Such stability produced extensive savings for Florida drivers in 2025, with the state’s top five auto insurance groups averaging a more than 6 percent rate reduction through mid-year, accounting for 78 percent of the state’s auto market. These reductions have increased to an average of 8 percent based on the most recent 2026 regulatory filings.

Homeowners are also experiencing relief after more than 185 residential filings for flat or decreased rates over the past two years, the OIR reported. Rate changes have continued to flatten in the state after years of tracking the upward trend of rates nationally.

Lower reinsurance costs factor into this finding, translating to a 10.7 percent price decrease overall on reinsurance in 2025, according to a Gallagher Re report on the sustained success of Florida’s reforms.

“Hurricanes Helene and Milton, two powerful and destructive storms that hit Florida in September-October 2024, also provided a useful – if unwanted – test case for the reforms’ efficacy,” the report added. “Many insurers ceded losses on layers below the state’s catastrophe fund, but despite this, there was more reinsurance capacity than expected available for these layers.”

Learn More:

Litigation Reform Works: Florida Auto Insurance Premium Rates Declining

Revealing Hidden Cost to Consumers of Auto Litigation Inflation

New Consumer Guide Highlights Economic Impact of Legal System Abuse and the Need for Reform

Disasters, Litigation Reshape Homeowners’ Insurance Affordability

Florida Senate Rejects Legal-Reform Challenge

Affordability, Homeowners Insurance, Insurers and the Economy, Market Conditions

Bridging the Short-Term Rental Coverage Gap

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By Lewis Nibbelin, Research Writer, Triple-I

As short-term rentals grow increasingly popular, many hosts remain unaware of the added complexity and often higher costs of properly insuring them, according to Triple-I’s latest Outlook.

Though coverage needs will vary, standard homeowners’ insurance policies typically exclude losses from commercial activity, which encompasses a broader range of risks with higher corresponding premiums, the report explains. Because short-term rentals fall under commercial use, rental owners who fail to update their existing policies may face denied claims, reduced liability coverage, higher deductibles, and other serious consequences.

Operating short-term rentals in two-unit or multi-unit dwellings compounds these concerns, as uncovered incidents affect the master insurance policy shared by both the rental unit owner(s) and their neighbors. In such instances, losses can impact the policy terms, conditions, exclusions, and premiums for all residents.

Across single and multi-unit dwellings, commercial activity may violate the permit requirements and operational restrictions set by state and local laws, leading to further policy limitations and potentially cancellation or nonrenewal, the report notes. While short-term rentals most directly increase liability exposure, such policy changes may also impact coverage for physical loss or damage, content loss or damage, and loss of use.

For homeowners planning to rent out their residences, the report outlines the following steps to maintain coverage and remain adequately protected:

  • Notify their insurer: Before operating the rental, owners must contact their insurance carrier, broker, or agent, including the master policy insurance carrier if the dwelling is multi-unit.
  • Comply with policy terms: Rental owners must adhere to their existing homeowners’ policy terms, conditions, and exclusions for short-term rentals, including any restrictions on number of guests and days or nights for rental use.
  • Obtain appropriate coverage: Depending on individual circumstances, rental owners may purchase commercial property insurance, small business insurance, or short-term rental-specific coverages to protect against the commercial risks of short-term rental use. In multi-unit dwellings, all unit owners must collectively purchase new coverage.

Many insurance carriers offer short-term rental endorsements or allow rental periods on standard homeowners’ policies, though restrictions still apply. Consulting with an insurance professional to understand available coverage options is crucial to meeting the specific needs of a given rental unit.

Triple-I’s new Outlook builds on testimony from Triple-I Chief Economist and Data Scientist Dr. Michel Léonard to New York City committee members last year as they considered legislation to expand homeowners’ ability to earn income through short-term rentals. Léonard discussed the potential insurance challenges of the expansion, focusing on the pervasive protection gap among residents using their homes for commercial purposes. Neither bill successfully made it past the city council.

Learn More:

Triple-I Chief Economist Testifies on NYC Measure on Short-Term Rentals

Triple-I Testifies on New York Insurance Affordability

Take Care in Addressing Homeowners’ Premiums, Bloomberg Cautions Policymakers

Insurance Affordability, Availability Demand Collaboration, Innovation

Triple-I Issues Brief: Homeowners Insurance (Members-Only)