Coverage A for Florida Surplus HO-3 Shows Mixed Bag in Premiums, Policy Count

Primary insurers in Florida aren’t the only ones reporting rate reductions for segments of the populace. Surplus lines also have seen premium decreases as well as significant policy count growth—at least for some slices of the market.

The Florida Surplus Lines Service Office said in a new report that premiums for Coverage A (dwelling) on HO-3 policies fell by 8% from 2024 to 2025 for values in the lowest tier—$100,000 to $300,000 in value. In a higher tier, $1 million to $5 million in value, premiums dropped by 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 said in its January 2026 report, released last week. “Observing moderation within this segment is therefore particularly instructive.”

For values in the $300,000 to $500,000 range, premiums rose year-over-year by more than 22%. For all Coverage A values, premiums increased 5%, to more than $666 million, total.

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

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

At the same time, HO-3 policy counts in Florida dropped slightly in the lowest Coverage A tier but rose sharply for higher values, suggesting that many mid-range and more affluent homeowners are continuing to look to surplus lines for coverage, even as the primary market appears to be stabilizing. For Coverage A values of $300,000 to $1 million, for example, HO-3 policy counts jumped by at least 32% last year.

For all Coverage A value levels, premium count climbed by 22%, reaching 132,106 policies in force in 2025, the office explained.

For all types of surplus lines coverage in Florida, not just HO-3, premium rose just 2% in 2025, topping $17 billion, according to FSLSO’s January Premium Report. Policy counts fell about 10% last year, to1.7 million. The cost per policy dropped over the 12-month period, averaging about $10,150 for 2025.

The Coverage A trend report can be seen here.

Topics Florida Excess Surplus