Florida's insurance providers had a net income loss of $1 billion at the end of 2021, in part due to weather-related risks, losses from lawsuits and insurance scams.
Florida homes are prone to damage from weather, including an active and destructive hurricane season. When a storm causes widespread damage, insurance companies must pay multiple large claims in a short amount of time.
In 2021, more than 100,000 lawsuits were filed against insurance companies about Florida properties. Nationwide, 75% of all property insurance lawsuits happened in Florida, while only 8% of property insurance claims were filed in the state.