Analysis: Fla. legal reforms deliver relief to housing costs

While legal system abuse is making housing less affordable, a new report shows Florida’s judicial reforms have helped deliver relief.

Many families across the country are affected by increasing insurance costs, construction delays and housing supply caused by litigation abuse.

A new analysis by the American Property Casualty Insurance Association says that when litigation costs increase, homeowners, renters and property owners ultimately pay more through higher insurance premiums, higher rents and fewer housing options.

But the APCIA report notes how recent legal reforms in Florida have delivered “real relief.”

Florida cracked down on legal system abuse in 2022 and 2023. Since those reforms took effect, Florida has seen homeowners insurance litigation decrease by nearly 50% in just 18 months.

As litigation declined, dozens of property-casualty insurers filed for rate decreases, more insurers entered or returned to the market and consumers experienced an average 14.5% reduction in property-casualty insurance costs compared to what would have occurred without reform.

These costs matter because excessive litigation directly affects housing affordability.

Predatory lawsuits, inflated claims and “nuclear” verdicts raise liability costs for builders, property owners and insurers. And those costs are passed along to families.

The APCIA analysis lists several drivers, such as premise liability lawsuits against multifamily property owners, assignment of benefits abuse, construction-related litigation and fraud, staged injury schemes as well as outsized verdicts that increase transportation and building material costs.

“Florida proved that curbing legal system abuse works,” said Robert Gordon, APCIA’s senior vice president, policy, research and international. “Litigation dropped sharply, insurers reduced rates, and property-casualty insurance costs fell by 14.5% – helping stabilize insurance markets and make housing more affordable for families and renters.”

This isn’t the first time Florida’s recent legal reforms have been praised.

Earlier this year, Protecting American Consumers Together announced the launch of an ad highlighting how lawsuit abuse driven by billboard lawyers is raising costs for New York consumers while other states, such as Florida, are seeing relief after reform.

A 2025 study showed that as Florida insurance premium costs dropped, the number of civil lawsuits being filed decreased, “nuclear verdicts” became less common and more insurers entered the Sunshine State.

And earlier this year, another APCIA report showed Florida’s reforms are delivering significant benefits to consumers, job creation and the state’s overall business climate.