Housing

As more insurance companies leave, where can Florida residents turn?

More and more homeowners are choosing not to insure their homes.

As more insurance companies leave, where can Florida residents turn?
Scripps News South Florida
SMS

Insuring your home in Florida got even harder in the last two weeks as both Farmers and AAA joined a growing list of companies that are ending some homeowner insurance policies in the Sunshine State.

"During a recent discussion with an insurance agent in the state, they told me it's the worst insurance market they've seen in 40 years in the business," said Mark Friedlander with the Insurance Information Institute (III).

Friedlander says Farmers customers don't need to panic since the non-renewals won't come until 2024, after hurricane season.

But some AAA customers are already getting their non-renewal notices in the mail.

"They need to shop right now to ensure they have no gap in coverage during Hurricane season," Friedlander said. "Here's the problem: Florida is still facing a very precarious property insurance marketplace. There are very few options in the private market."

Homeowner insurance rates skyrocket in waterfront areas in the South
Homeowner insurance rates skyrocket in waterfront areas in the South

Homeowner insurance rates skyrocket in waterfront areas in the South

By some estimates, homeowners' insurance in Florida is set to increase by 66% in 2023.

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Citizens, the state-run insurer of last resort, is averaging about 30,000 new customers each month, according to its CEO.

But there's a new trend that's concerning experts in the field.

According to the III, roughly 7% of all homeowners nationwide choose not to carry property insurance. In Florida, it's double that number, and it keeps rising.

"Unfortunately, it's a reality today because property insurance and flood insurance have become unaffordable in Florida," Friedlander said.

The average homeowner's policy in Florida costs about $6,000 right now, three times the national average.

This story was originally published by Ryan Kruger at Scripps News South Florida.