Home Insurance: Florida Homeowners Beware

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As the sun sets on the horizon in the radiant, ever-intriguing state of Florida, shadows of despair creep ever closer to the hearts of homeowners. For they witness yet another insurer retracting its protective wings from the Sunshine State. Like a vanishing mirage in the desert heat, home insurance policies are disappearing from their grasp. 

In a symphony of regret laced with an unclear future, Progressive – a maestro in the landscape of insurance – has begun the melancholic adagio of severing ties with a staggering 100,000 home insurance policies across Floridian plains. The first wave of non-renewal notices, swift and relentless as a December wind, have already claimed their victims. The echo of these reminders bounced off in unison, chronicled harmoniously byWFLA. A grim coda, marking the end of fifty percent of Progressive’s home policies in Florida, an elegy celebrating the times gone by. 

The spheres of insurance wisdom, held aloft by the Insurance Information Institute (III), projected flickering images of further disruption to come. Progressive, in its relentless march, is destined to sweep aside 47,000 DP3 policies, marking second homes now vulnerable, and 53,000 policies shielding the “high-risk properties”. A fresh layer is added to an existing mound of 56,000 discarded policies, a lingering scent of the retreat Progressive orchestrated last year. 

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The cries of lawmakers, like waves crashing against the shore, fought hard to rid Florida of this stormy insurance debacle. Yet their pleas echoed through empty corridors, as insurers like Progressive continued retreating, fleeing the Sunshine State. The home of Progressive, nestled in the quaint scenery of the Mayfield Village, Ohio, led by the formidable CEO Tricia Griffith, takes its place among a rising number of insurers adjusting their scopes away from the Florida market. Following the turn of a year, when the crisp chill of December gripped Tallahassee, the state senatepassed a bill tailored for the industry. A beacon of hope, bolstering reinsurances and tightening homeowners’ grasp on suing insurers — a promising melody intended to lure providers back into the market. 

Yet, a more formidable opponent storms across the insurers’ path. An adversary more formidable than any lawsuit. A force of nature, quite literally — climate change. The intangible yet crushing weight of increasing storms in frequency and ferocity take aim at insurance bottom lines.  

Farmers Insurance falls in line with the retreating insurers, announcing last July its intention to stop writing and renewing Florida homeowners’ policies. A declaration that left an estimated 100,000 policies floating adrift. 

As the stream of providers ebbs away from Florida, homeowners are cornered into seeking their insurance lifelines from the state-backed Citizens Property Insurance. Designed to be a safety net in tumultuous times, Citizens now finds itself laden with over 1.4 million policies, with an 18 percent market share. However, like a sunrise heralding a fresh day of challenges, rate hikes seem to be on the horizon for Citizens customers. A proposal submitted to Florida’s Office of Insurance Regulation last month projected an average increase of 11.5 percent in costs for the most common homeowner policy Citizens provides, taking effect this December, while an increase of 10.2 percent in commercial policies begins this November.

Disclaimer About the Information Presented Here

The content of this post is for informational purposes only and should not be construed as professional advice or guidance on home insurance matters. I am not a certified insurance professional, and this post should not be used as a basis for making any decisions related to home insurance. Always consult with a licensed insurance professional or expert before making any decisions or taking any actions based on the information provided here.

About the Author

Post by Alvaro Menezes
 
Álvaro Menezes is a Brazilian photojournalist with a great passion for Florida.  He is the owner and writer for this blog.
 
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