For homeowners in Hollywood and across Broward County, the last few years have brought significant confusion and rising costs in the property insurance market. But as we look toward 2026, there are signs that the market is finally moving through a period of change, making it crucial to understand the new rules and requirements. The biggest takeaway is that major state-level reforms are starting to have an effect, but they require homeowners to be more proactive about their flood coverage, roof condition, and claims timeline than ever before. This article, brought to you by Finney Insurance Corporation, breaks down the key changes you need to prepare for now to secure affordable and reliable coverage in the near future.
- Has the Florida Insurance Crisis Really Ended?
- Why is the private market returning to Florida?
- If my home is insured for over $400,000, do I really need flood insurance?
- How Does the New PIP Law Affect My Auto Insurance in 2026?
- What is the biggest change after the PIP repeal?
- What is the New Deadline for Filing Property Claims?
- Why did the claims deadline change?
- How Do I Protect My Roof from Non-Renewal?
- If my insurer non-renews my policy because of my roof, what should I do?
- Will Claims Be Paid Out Faster in 2026?
- What are the new time limits for my insurer?
- What is Happening with Florida’s Property Taxes in 2026?
- What are the major tax relief ideas being discussed?
- Conclusion and Call to Action 📞
Has the Florida Insurance Crisis Really Ended?
While insurance rates in Florida remain some of the highest in the country—with the average annual premium for a $300,000 home nearing $5,730, which is more than double the national average—the market is beginning to stabilize thanks to recent state legislative reforms (Source: Bankrate).1 The reforms, passed primarily in 2022, aimed to curb excessive litigation, which had become a major financial drain on insurers.2 Since those changes, Florida has seen a double-digit decrease in new property claim lawsuits, and more companies are showing interest in writing policies in the state, which boosts competition (Source: Insurance Information Institute). For consumers, this is starting to show up as a slowdown in rate hikes, with some insurers even filing for small rate decreases for 2026.3
Why is the private market returning to Florida?
The private market is showing signs of returning because the legislative changes have made the business of insurance in Florida less risky and more predictable.4 Key changes, like the elimination of the “one-way attorney fee” provision, have made it less profitable for lawyers to file lawsuits against insurance companies, which was a huge cost driver.5 As a result, the state-run insurer of last resort, Citizens Property Insurance Corporation, is starting to shrink for the first time in years, shedding hundreds of thousands of policies to private companies (Source: Florida Office of Insurance Regulation).6 This “depopulation” is a major sign of market health, as it shifts the risk back to the private sector and away from Florida taxpayers.7
What are the Mandatory Flood Insurance Requirements in 2026?
The most critical and non-negotiable change impacting Hollywood homeowners in 2026 is the mandatory flood insurance requirement for many who are insured through Citizens Property Insurance Corporation. If your home is insured through Citizens, you must carry a separate flood policy.8 This rule is being phased in based on your home’s insured value:
| Year | Homes Insured For (Dwelling Coverage) | Flood Insurance Requirement Starts |
| 2024 | Over $600,000 | Mandatory for renewal |
| 2025 | Over $500,000 | Mandatory for renewal |
| 2026 | Over $400,000 | Mandatory for renewal |
| 2027 | All Citizens Policyholders | Mandatory for renewal |
If my home is insured for over $400,000, do I really need flood insurance?
Yes, if your home is insured through Citizens for more than $400,000, having a flood insurance policy (either from FEMA’s NFIP or a private carrier) will be required to renew your policy in 2026.9 This requirement applies even if you are not in a high-risk flood zone (Source: FL Senate Bill 2A).10 This is crucial because standard homeowners policies never cover flood damage.11
The state is pushing this requirement because:
- Flood Risk is Everywhere: About 25% of all flood claims paid by the NFIP come from low- to moderate-risk areas, proving that heavy, localized South Florida rain can flood any property (Source: FEMA).
- Protecting Taxpayers: This rule ensures that if a major hurricane hits, homeowners have the right coverage, reducing the state’s potential financial burden (or tax on all Floridians) after a major disaster.
How Does the New PIP Law Affect My Auto Insurance in 2026?
The Florida Legislature has mandated the most sweeping changes to the state’s auto insurance system in decades by repealing the Personal Injury Protection (PIP) requirement.12 This change will be complete by July 1, 2026, fundamentally changing how drivers cover their medical costs after an accident (Source: FL Senate Bill 1181).13
What is the biggest change after the PIP repeal?
The biggest change is that Florida is moving from a “no-fault” system to an “at-fault” (or tort) system.14
| Old System (Pre-July 2026) | New System (Post-July 2026) |
| PIP: Required drivers to carry Personal Injury Protection that paid for their own medical costs (usually $10,000) regardless of who caused the accident. | Mandatory Bodily Injury (BI) Liability: This replaces PIP and requires drivers to carry $25,000 per person and $50,000 per accident in BI liability coverage. |
| The Result: Your own policy paid for your immediate medical costs. | The Result: The person who causes the accident will have their BI liability policy pay for the medical costs of the other driver and passengers, up to the new required limits. |
This means that after July 1, 2026, your new minimum auto insurance policy will be 25/50/10, meaning $25,000 BI per person, $50,000 BI per accident, and $10,000 Property Damage (Source: FL Senate Bill 1181). You will likely need to add MedPay (Medical Payments Coverage) to your policy to cover your own medical costs, which PIP used to handle.
What is the New Deadline for Filing Property Claims?
To bring stability to the market, one of the first reforms shortened the time homeowners have to file a claim.15 If your Hollywood home suffers property damage due to a non-hurricane event, the deadline to file a claim with your insurer is now one year from the date the damage occurred (Source: FL Senate Bill 2A).16
Why did the claims deadline change?
The deadline was changed from three years to one year because old, slow-to-file claims were a huge problem for insurers. For instance, a homeowner might have noticed a small roof leak two years after a storm, but then claim the entire roof was damaged by that storm. The long timeline made it impossible for the insurance company to determine when the damage actually happened (was it the storm or just wear and tear?). The shortened deadline forces prompt reporting, which helps the insurer accurately investigate and settle claims faster.17
How Do I Protect My Roof from Non-Renewal?
One of the biggest struggles for South Florida homeowners has been finding coverage for older homes, as insurers often non-renew policies simply because the roof is too old. Heading into 2026, there are new protections, but you need to be prepared to act. Insurers cannot refuse to renew a homeowners policy solely because the roof is over 15 years old, as long as a licensed inspector says it has at least 5 years of useful life left.18
If my insurer non-renews my policy because of my roof, what should I do?
If your insurer non-renews your policy only because of the roof’s age, they must notify you of your right to get a roof inspection.19 You should then:
- Get a Licensed Inspection: Pay for a certified inspection.
- Check the Useful Life: If the inspection shows the roof has five years or more of useful life remaining, your insurer is required to consider that information and may not use age as the only reason for non-renewal (Source: FL Senate Bill 128).20
- Potential Reimbursement: Some proposed legislation for 2026 would require insurers to reimburse the homeowner up to $300 for the inspection cost if the roof does, in fact, have five or more years of life left.21
The key takeaway is that you have new rights and should never accept a non-renewal notice without questioning it and getting an inspection.
Will Claims Be Paid Out Faster in 2026?
Yes, new laws have put tighter timelines on insurance companies, with the goal of getting money to policyholders much faster after a covered loss.22 The deadlines for insurers to act have been significantly reduced (Source: FL Department of Financial Services).23
What are the new time limits for my insurer?
The new rules significantly shorten the time an insurer has to process your claim:
- Acknowledge Claim Communication: Reduced from 14 days down to 7 days.24
- Start Investigation: Reduced from 14 days down to 7 days.25
- Conduct Physical Inspection (for Hurricane Claims): Reduced from 45 days down to 30 days.
- Pay or Deny the Claim: Reduced from 90 days down to 60 days.26
Hypothetically, if a storm damages your Hollywood home, these rules mean you should get an adjuster to your property and a payment decision in about half the time it took just a few years ago. This improvement directly benefits homeowners by speeding up the repair process.
What is Happening with Florida’s Property Taxes in 2026?
While not a direct insurance change, there are several proposals being considered for the 2026 ballot that aim to provide property tax relief to homeowners (Source: Holland & Knight).27 Lawmakers are looking for ways to make Florida more affordable, and property taxes are a huge target.28
What are the major tax relief ideas being discussed?
Several constitutional amendments may appear on the ballot in November 2026, including proposals to:
- Phase Out Taxes: Gradually eliminate non-school property taxes over ten years.29
- New Exemptions: Create a new homestead exemption equal to 25% of a home’s value.30
- Property Insurance Incentive: Create an additional $100,000 exemption for homeowners who maintain property insurance, which would be a huge incentive to stay insured.31
If any of these pass, they could put thousands of dollars back into your pocket, helping offset the rising costs of housing and insurance in Broward County.
Conclusion and Call to Action 📞
The Florida insurance market heading into 2026 is a study in two halves: one half is stabilizing thanks to legislative reforms that are reducing lawsuits and attracting new private carriers; the other half is demanding more personal responsibility from homeowners, especially regarding flood risk and policy maintenance.32
For Hollywood homeowners, the key to navigating the next two years is to be proactive:
- Check Your Citizens Policy: Find out your Dwelling Coverage limit. If it’s over $400,000, plan to secure flood insurance now to avoid a scramble before your 2026 renewal.
- Review Your Auto Coverage: Prepare to discuss switching from the old PIP coverage to the new mandatory 25/50/10 BI Liability limits, and consider adding MedPay for your own protection.
- Document Your Roof: If your roof is older, have an inspection done before your next renewal to protect against non-renewal notices.
The state of Florida is making great efforts to fix the market, but the best way to secure an affordable, reliable policy is by being an informed and prepared homeowner.
Don’t wait for your renewal notice to understand these major changes! Contact Finney Insurance Corporation today. As your local Hollywood, FL experts, we can review your current policies, explain the impact of the 2026 laws on your home and auto coverage, and help you secure the best policy options from the stabilizing private market.
