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Homeowners Policy Florida

Florida Insurance Companies Announced Non-Renewals for Homeowners’ Policies

Aug 21, 2023

Homeowners throughout the Sunshine State are facing significant challenges in finding and keeping homeowners insurance coverage. With over fourteen regional insurance companies in liquidation and national companies pulling out of the state, the options for insurance for new and existing homeowners continue to shrink.

In some situations, as with the Farmers Insurance announcement, the insurance company is ending coverage immediately and notifying over 100,000 policy owners that they are canceling their policy. Farmers Insurance must provide 120 days’ notice to these homeowners, but it creates a problem as people scramble to find insurance.

In addition to dropping or canceling policies, some insurance companies are simply not renewing policies. These homeowners are joining the growing number of people trying to find affordable insurance in their area.

At Del Toro Insurance, we assist homeowners who receive a cancellation or non-renewal notice. We serve customers throughout Hialeah Gardens, Margate, Homestead, Palmetto Bay, Cutler Bay, Hialeah Gardens, North Miami Beach, Coral Gables, Hialeah, Naples, and Miami, FL. Our team of insurance agents is committed to helping you find the homeowner policy that meets your needs.

The Reasons for Non-Renewal Notices

Several key factors drive the increasing insurance rates and the number of insurance companies pulling out of Florida. All issues are directly related to human behavior, although on a very different level.

The population is on the rise, and the state is now the fastest-growing state in the Union. In addition, the population of Florida is located mainly on the coasts, with six major cities, including Naples and Miami, in high-risk areas for storm surge damage. This is relevant as major storm numbers are increasing, including the record-setting payout for damages from Hurricane Ian, a Category 4 storm that hit the coast in 2022.

However, long before Ian, insurance companies were pulling out of Florida due to high payouts and the highest rate of home insurance lawsuit cases. These factors prompted State Farm to pull out, and the trend of ending coverage for the state still continues.

Pulling out of the state means insurance companies have to officially drop coverage or provide a non-renewal notice to the policyholder. The insurance company can choose not to renew the insurance plan. In Florida, the complicated legal issues and the high risk for the insurance company make this the ideal time to notify customers and move out of the market.

Next Steps

If the non-renewal notice is due to the insurance company no longer offering coverage in the area, the homeowner can shop around for another policy.

In Florida, the number of insurance providers is decreasing while rates are increasing, and it is important to act quickly to avoid any gaps in coverage. An agent at Del Toro Insurance can assist you with the process, or you can obtain quotes from insurance companies on your own.

To help speed up the process and potentially reduce your rates, consider completing a wind mitigation and four-point inspection and consider any upgrades based on recommendations from these reports.

If you have questions about finding homeowners’ insurance after receiving a non-renewal notice from your insurance plan, reach out to Del Toro Insurance. We are available through our online form or call us today at (305) 335-8676.

FAQs

Why are Florida insurance companies announcing non-renewals for homeowners’ policies?

Insurance companies are no longer providing coverage in the state of Florida due to the high risk of storm damage, increased frequency of storms, and the highest rate of homeowner insurance lawsuits in the country.

What alternatives do homeowners have if their policies are non-renewed?

Homeowners have the option to get quotes from other insurance companies currently providing homeowners policies in the state. They may also qualify for Citizens insurance.

How can homeowners proactively protect themselves from being non-renewed by their insurance company?

Implementing wind mitigation inspection report recommendations, ensuring the home has storm shutters and hurricane-proof doors, and that hurricane clips are installed can help prevent a non-renewal. Paying premiums on time and completing any required repairs, particularly to the roof, is also important.

What steps should homeowners take if their policy is non-renewed?

Ask for the reason for the non-renewal if not understood. Talk to the team at Del Toro Insurance to start searching for your next home insurance policy.

Are there any legal protections for homeowners who are facing non-renewals?

Working through an insurance agent can help address the renewal and assist in finding replacement coverage. Coverage through Citizens may also be a possibility for qualifying homes.

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