Florida’s home insurance market is very volatile, and as insurance companies continue to leave The Sunshine State, it’s becoming increasingly difficult for homeowners to find affordable insurance policies. Since the start of 2022, many insurance companies have announced that they either intend to scale back their offerings or leave Florida altogether. For example, companies like Weston Property & Casualty Insurance have gone insolvent, leaving their customers uninsured. But as few insurance companies remain in the state, home insurance rates continue to rise.
But why are insurance companies leaving Florida? Read on to learn more. And, if you are a Miami homeowner looking for new coverage, remember to reach out to our team at NSI Insurance to compare multiple quotes. As a locally owned independent insurance agency, we’re always here to help you find the best coverage for the best price.
Why Are Home Insurers Leaving Florida?
Several insurance companies have left Florida in the past year, while others have gone insolvent. As mentioned, Weston Property & Casualty Insurance was placed into receivership for liquidation, resulting in the cancellation of thousands of insurance policies. In addition, Southern Fidelity was also forced into liquidation, leaving about 80,000 Florida homeowners scrambling to find new coverage.
There are several reasons insurance companies are leaving Florida, including:
● Litigation Costs: A recent Supreme Court decision allows courts to award plaintiffs’ attorneys up to 2.5x their regular rates when the court rules in favor of the policyholder, resulting in significantly more expensive litigation costs for insurance companies.
● Natural Disasters: Natural disasters — particularly hurricanes — make insuring Florida homeowners very high-risk. When a hurricane strikes, many homeowners file claims simultaneously, resulting in high payouts from insurance companies.
● Reinsurance Companies: An increasing number of reinsurers are choosing to leave Florida, which plays a crucial role in many insurance companies choosing to leave the state.
While the situation regarding the insurance market in Florida is relatively complicated, these are a few of the primary reasons why insurance companies are leaving The Sunshine State.
What to Do if Your Insurance Company Is Leaving
If your home insurance company leaves Florida, it’s essential to know what steps to take to find new coverage quickly and reduce the stress you experience due to this unfortunate situation. If you receive notice that your insurance policy is being canceled, here’s what to do:
- Call your insurance company immediately and speak with a representative or agent. Find out why your policy is being canceled and how long you have to find new coverage.
- Start shopping for coverage immediately. Request and compare quotes from multiple providers to find the best available rates. One of the best ways to do this is by working with an independent insurance agency like NSI Insurance. While big-box insurance companies can only offer policies from their own company, our agents have the freedom to explore multiple policies from multiple carriers to ensure you find the best coverage at the best rate.
- Complete any necessary repairs to your home. This makes it easier to find affordable home insurance as insurance companies will likely require you to undergo a home inspection after purchasing a policy.
- Contact the Florida Department of Insurance Regulation (FLOIR) if you feel that you are being treated unfairly by insurance companies. FLOIR can help you secure new coverage if you struggle to find an affordable policy.
Tips for Finding More Affordable Coverage in Florida
Receiving a cancellation notice can be very stressful, but knowing what steps to take can help you find coverage quickly and ensure your most valuable assets are protected. Unfortunately, Florida homeowners are already subject to higher insurance rates than residents in most other parts of the country, and premiums will continue to rise as insurance companies pull out of The Sunshine State; that’s why it’s so important to shop smart!
Keep these tips in mind when shopping for home insurance in Florida:
● Compare quotes from multiple lenders.
● If possible, bundle your home and auto insurance policies to save on your monthly premiums.
● Ask insurance companies about any discounts for which you may be eligible.
● Choose a higher deductible if you are comfortable paying more out-of-pocket for claims.
● Adjust your coverage as necessary to ensure you aren’t paying for coverage you don’t need.
NSI Insurance Has You Covered
Due to a combination of factors, many insurance companies are choosing to leave Florida or are going insolvent. Homeowners need to be prepared for this possibility and understand what steps to take if their home insurance policies are canceled, so we hope you found this blog helpful!
At NSI Insurance, we know how concerning it can be to lose home insurance coverage. As a locally owned independent insurance agency, our agents have a deep understanding of the South Florida community, which reflects in the policies and services we offer. When you need to find the best homeowner’s insurance in Miami for the best price, NSI Insurance is here to help. If you’re ready to compare homeowners insurance quotes in Miami, FL, contact us today to get started! Thanks for stopping by our blog, and we hope to help you soon.