Home Insurance Companies Are Leaving Florida
With the recent collapse of several home insurance companies, there’s a significant shortage of homeowners insurance in Florida. Two of the biggest insurers are leaving the state, and the price increases are forcing some consumers to find new providers. Progressive Insurance is announcing plans to cut 56,000 Florida homeowner policies, as is Farm Bureau Insurance. Other insurers have restricted coverage to a few types of homes and have canceled policies outright.
In recent years, home insurance companies have been losing money in Florida. According to Gilway, it is expected that Florida insurers will lose more than $1 billion in 2019. In addition, a study by the National Association of Insurance Commissioners found that more than 8% of all property insurance claims nationwide were filed in Florida last year. The state also has the most lawsuits involving home insurance. Therefore, the current shortage of insurance is a problem for the state.
American Coastal, based in Bradenton, is also leaving the state. The company’s decision to leave the state comes in response to reports that they won’t be able to recoup their losses in the near future. A condominium in Bradenton Beach reported last November that American Coastal would not renew its homeowner’s insurance coverage after the current one expired. The new coverage was more expensive, with an average annual premium of $422. People’s Trust Insurance, based in Deerfield Beach, announced last week that it will no longer write new home insurance policies in Florida, and that eight counties will remain closed for new business.
Other companies are also withdrawing from Florida’s property insurance market. One company, United Property and Casualty, had more than 180,000 policyholders in the state. However, the company is no longer writing new policies in the state. The decision to stop writing new Florida policies was announced last week, and some agents have already contacted their clients. While it is unclear how much the impact on the economy is, it is a big loss for the state.
In Florida, it’s important to understand why home insurance companies are leaving the state. It’s important to be proactive and to be prepared. Some insurers are threatening to leave the state because of bad economic conditions. Other insurers have decided to leave Florida for other states in the United States, while others may stay here for a few years. The reason is the state’s regulatory agencies are worried about the deteriorating financial health of Florida’s insurance industry.
Another reason is that some companies are leaving the state because they don’t think the state is safe. The state is prone to hurricanes, so insurance companies must be able to keep their customers safe and secure. Thankfully, some home insurance companies are moving out of Florida altogether. But a large number of homeowners have already been left without their insurance coverage. In this state, people are being pushed to change their policy because of this change.
The reasons for the decline of home insurance in Florida are numerous. The state has an increasing number of insurers, and the state’s hurricane-prone environment is not conducive to growth. Fortunately, a large number of these companies will remain in the state, so the state will have less competition for home insurance. The problem is that many of them are unable to afford to insure the entire state. Some of the insurers are moving only the smallest cities, so they aren’t willing to take a risk on Florida residents.
Although UPC has stopped writing new business in Florida, the other two insurers have stopped writing new policies. For example, Security First and State Farm offer HO-3 and HO-6 homeowners policies. A government-run nonprofit called Citizens Property is also leaving Florida. The government-run organization isn’t the only one to leave the state. Despite its apparent loss of customers, it remains in the top tier of insurers in the state.
Meanwhile, the state’s economy is in the midst of an insurance premium crunch that has forced private insurers to cut costs and increase their premiums. The loss of private insurers in Florida is estimated to be more than $1 billion. Moreover, the state’s laws are making it more difficult for insurance companies to provide affordable coverage in Florida. While there are a few new companies in the state, it’s likely that the rest will follow.