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Florida’s property litigation declines, but carriers still face costly inventory

In 2025, litigated claims accounted for 12.1% of residential property closures with known status, and they carried loss adjustment expenses more than seven times the average for non-litigated closures.

Reported · Written up by our desk · Property Insurance

Florida’s reforms are improving the litigation environment for property insurers, but carrier operators still face a stubborn backlog of expensive cases, according to data cited in Coverager’s analysis of state reporting. Coverager says new-suit indicators are falling even as litigated claims continue to represent a disproportionate share of residential property closures. For 2025, litigated claims made up 12.1% of residential property closures with known status, and they carried more than seven times the average loss adjustment expense of non-litigated closures, based on figures referenced from the Florida Office of Insurance Regulation’s July 2026 Insurer Stability Report. The article argues that insurers, regulators, and analysts should track multiple timelines because reforms can improve the “front door” by affecting new litigation inflow, while claims teams still spend disproportionate time resolving older litigated inventory. Coverager notes that the measured picture depends on whether you look at loss-year data, suit-open year, or closure year, since each answers a different operational question. Coverager adds that the remaining litigated inventory is concentrated in wind and water perils, with geographic concentration less than it was previously, and with litigation that remains disproportionately expensive to resolve. The outlet says those dynamics change how claims capacity should be planned and how litigation results should be reported after reforms alter the inflow of new lawsuits.

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