Florida’s ongoing insurance crisis continues to create ripple effects across the real estate market, affecting everything from property values and mortgage approvals to closing timelines. For buyers, sellers, and real estate attorneys, understanding the legal implications is key to navigating deals successfully in 2025.
Why Is Insurance So Challenging in Florida?
- Hurricane risk has made insurers wary, especially along the coast.
- Litigation costs and assignment-of-benefits abuse have driven up premiums.
- Multiple insurer exits from the Florida market have limited options for coverage.
As a result, insurers have raised premiums, reduced coverage limits, and imposed new underwriting requirements.
Real Estate Transaction Impacts
- Delayed or failed closings due to inability to secure required coverage
- Lender refusals if property insurance does not meet their standards
- Last-minute policy changes that derail financing or breach contract terms
Legal Strategies for Mitigating Risk
- Build insurance review into due diligence: Confirm insurability before appraisal or inspections.
- Use contingency clauses: Protect buyers from being forced to close without adequate coverage.
- Negotiate closing extensions or flexible terms if market conditions make insurance approval slow.
Buyers and sellers alike must be prepared for a more complex closing process. Attorneys should proactively address insurance in contracts and help clients navigate last-minute disruptions.
In today’s Florida market, a deal isn’t truly done until the insurance binder is signed.
