Florida Surplus HO-3 Coverage A: Premiums and Policy Count Trends Revealed

In Florida, the landscape of insurance is evolving, with primary insurers not being the only ones to report rate reductions. Surplus lines are also experiencing premium decreases alongside notable growth in policy counts for certain market segments.

The Florida Surplus Lines Service Office (FSLSO) recently released a report indicating that premiums for Coverage A (dwelling) on HO-3 policies have decreased by 8% from 2024 to 2025 for properties valued between $100,000 and $300,000. In a higher tier, covering values from $1 million to $5 million, premiums saw a reduction of 6% in 2025.

“While surplus lines data should not be interpreted as a proxy for admitted-market conditions or used for price comparison, it provides valuable insight into pricing and availability trends within a segment designed for non-standard risks and more complex underwriting,” FSLSO noted in its January 2026 report, released last week. “Observing moderation within this segment is therefore particularly instructive.”

For properties valued between $300,000 and $500,000, premiums increased year-over-year by over 22%. Overall, for all Coverage A values, premiums rose by 5%, totaling more than $666 million.

“Pricing moderation is especially evident in core homeowner segments,” the report highlighted.

In the $300,000 to $400,000 Coverage A tier, average premiums declined from approximately $2,960 in 2024 to $2,724 in 2025, marking a reduction of about $234 per policy. This shift brings mid-range premiums closer to commonly cited national benchmarks, which typically range between $2,400 and $2,500 for a $300,000 dwelling, according to FSLSO. (These national figures reflect the broader homeowners market, including admitted business and residual markets.)

Simultaneously, HO-3 policy counts in Florida experienced a slight decline in the lowest Coverage A tier, while there was a significant increase for higher values. This trend suggests that many mid-range and affluent homeowners are increasingly seeking surplus lines for coverage, even as the primary market appears to be stabilizing. For Coverage A values ranging from $300,000 to $1 million, HO-3 policy counts surged by at least 32% last year.

Across all Coverage A value levels, the total number of policies in force climbed by 22%, reaching 132,106 in 2025, as explained by the office.

For all types of surplus lines coverage in Florida—not just HO-3—premiums rose by a modest 2% in 2025, exceeding $17 billion, according to FSLSO’s January Premium Report. However, policy counts fell by about 10% last year, totaling 1.7 million. The average cost per policy decreased over the 12-month period, averaging around $10,150 for 2025.

The Coverage A trend report can be viewed here.

Topics
Florida
Excess Surplus

In Florida, the landscape of insurance is evolving, with primary insurers not being the only ones to report rate reductions. Surplus lines are also experiencing premium decreases alongside notable growth in policy counts for certain market segments.

The Florida Surplus Lines Service Office (FSLSO) recently released a report indicating that premiums for Coverage A (dwelling) on HO-3 policies have decreased by 8% from 2024 to 2025 for properties valued between $100,000 and $300,000. In a higher tier, covering values from $1 million to $5 million, premiums saw a reduction of 6% in 2025.

“While surplus lines data should not be interpreted as a proxy for admitted-market conditions or used for price comparison, it provides valuable insight into pricing and availability trends within a segment designed for non-standard risks and more complex underwriting,” FSLSO noted in its January 2026 report, released last week. “Observing moderation within this segment is therefore particularly instructive.”

For properties valued between $300,000 and $500,000, premiums increased year-over-year by over 22%. Overall, for all Coverage A values, premiums rose by 5%, totaling more than $666 million.

“Pricing moderation is especially evident in core homeowner segments,” the report highlighted.

In the $300,000 to $400,000 Coverage A tier, average premiums declined from approximately $2,960 in 2024 to $2,724 in 2025, marking a reduction of about $234 per policy. This shift brings mid-range premiums closer to commonly cited national benchmarks, which typically range between $2,400 and $2,500 for a $300,000 dwelling, according to FSLSO. (These national figures reflect the broader homeowners market, including admitted business and residual markets.)

Simultaneously, HO-3 policy counts in Florida experienced a slight decline in the lowest Coverage A tier, while there was a significant increase for higher values. This trend suggests that many mid-range and affluent homeowners are increasingly seeking surplus lines for coverage, even as the primary market appears to be stabilizing. For Coverage A values ranging from $300,000 to $1 million, HO-3 policy counts surged by at least 32% last year.

Across all Coverage A value levels, the total number of policies in force climbed by 22%, reaching 132,106 in 2025, as explained by the office.

For all types of surplus lines coverage in Florida—not just HO-3—premiums rose by a modest 2% in 2025, exceeding $17 billion, according to FSLSO’s January Premium Report. However, policy counts fell by about 10% last year, totaling 1.7 million. The average cost per policy decreased over the 12-month period, averaging around $10,150 for 2025.

The Coverage A trend report can be viewed here.

Topics
Florida
Excess Surplus