Progressive Insurance Shakeup: What Homeowners in Florida Need to Know
In a recent turn of events, Progressive Insurance has sent shockwaves through the Florida homeowners’ insurance landscape by announcing its decision not to renew certain policies. This unexpected move has left countless homeowners in Florida in a state of uncertainty, urgently seeking alternative insurance options. In this blog, we will delve into the reasons behind Progressive’s decision and explore the potential ramifications for affected homeowners.
Why Did Progressive Halt Homeowners Insurance in Florida?
The Florida homeowners’ insurance market finds itself in a precarious situation marked by skyrocketing litigation costs and staggering losses from recent natural disasters. Progressive, along with numerous other insurers, has grappled with net underwriting losses exceeding $1 billion. Attributed to fraudulent lawsuits and an elevated overall claim risk in Florida. Over the last three years, more than 30 insurance providers have withdrawn home coverage in Florida, with eleven property and casualty companies that offered homeowners insurance in the state liquidating since 2017 . Progressive now joins this trend, opting to “rebalance” its portfolio in Florida by not renewing 103,000 home policies.
How Will this Decision Impact Homeowners in Florida?
Progressive’s choice to cease renewing certain homeowners insurance policies in Florida is poised to have a substantial impact on the affected homeowners. Those directly affected will need to urgently secure new insurance policies.Which in turn could potentially come at a higher cost than their existing coverage. The cost of insurance in Florida has long been a concern, with up to 15% of homeowners in the state currently living without property insurance. The average annual home premium in Florida hovers around $6,000, significantly surpassing the U.S. average of approximately $1,700.
Examples of Cost Increases:
The decision by Progressive to stop renewing some homeowners insurance policies in Florida could lead to a notable surge in insurance costs for homeowners in the state. As affected homeowners explore alternative coverage, the average cost of homeowners insurance for a 12-month policy from insurers within Progressive’s network ranges from $999 ($83/month) to $1655 ($138/month).
In Conclusion:
Progressive’s decision not to renew certain homeowners insurance policies in Florida is a significant blow to the state’s insurance market. Homeowners impacted by this decision now face the daunting task of finding new insurance policies, potentially at a higher cost than their current coverage. The elevated cost of insurance policies could be a major contributing factor to the alarming statistic that up to 15% of Florida homeowners are living without property insurance. As Florida homeowners navigate this challenging landscape, securing adequate and affordable insurance coverage becomes a critical priority.
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