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Final yr, Progressive introduced that it could not renew sure owners’ insurance coverage insurance policies in Florida to “rebalance our publicity,” beginning in Could this yr. These non-renewal notices have already began arriving.
“Pricey Policyholder, your coverage will expire at 12:01 on July 1, 2024, for the next causes. After cautious consideration we’re unable to give you a renewal coverage because of a discount in our hurricane publicity. Please contact your agent to search out substitute protection,” the letters learn.
“I used to be shocked, I used to be shocked,” Ira Kasdan instructed ABC Motion Information. “There could also be a time the place as a lot as we love Florida we could not be capable of keep right here.”
The information comes as Residents Insurance coverage, the insurer of final resort for the state that Ron DeSantis (pictured) has referred to as bancrupt, had some excellent news. It reported roughly 1.162 million insurance policies final Friday, a lower from 1.18 million insurance policies the earlier week and 1.175 million insurance policies two weeks prior, based mostly on the info accessible on the Residents web site.
Final week, six non-public insurance coverage corporations — Slide Insurance coverage Co., Florida Peninsula Insurance coverage Co., Edison Insurance coverage Co., Southern Oak Insurance coverage Co., American Traditions Insurance coverage Co., and Folks’s Belief Insurance coverage Co. — acquired regulatory approval to take over insurance policies from Residents.
This motion is part of what’s known as a Residents’ “depopulation” program.
Initially established as a security internet insurer, Residents has grown to turn into the state’s largest property insurer lately. This development has occurred as non-public insurers have been letting go of consumers and rising charges because of monetary difficulties.
Residents’ coverage depend peaked at roughly 1.412 million within the fall of 2023 however has since seen a lower owing to the depopulation program.
When information broke concerning the insurer chopping again within the state, an organization spokesperson confirmed the transfer to native information channel WFLA and talked about that Progressive had already initiated the mandatory regulatory filings to enact the change.
The non-renewals primarily impacted DP3 insurance policies, that are often for second properties, in addition to different “direct and company property insurance policies.”
Whereas the spokesperson didn’t present precise figures, the Insurance coverage Info Institute (Triple-I) projected that about 100,000 policyholders can be affected by the pullback.
This equated to 50% of the insurer’s insurance policies within the state at the moment, in response to Triple-I, affecting 47,000 DP3 insurance policies and 53,000 insurance policies for properties deemed as excessive threat.
The Progressive spokesperson acknowledged that notices have been despatched out to affected policyholders in December, whereas the primary wave of non-renewals took impact in Could 2024.
“Florida property stays an vital a part of our Progressive Home based business, and now we have no plans to go away the state,” they famous additional. “Nevertheless, we had been working collaboratively with state officers and the Florida Workplace of Insurance coverage Regulation to implement modifications that allowed us to rebalance our publicity whereas persevering with to serve Florida owners.”
Progressive’s resolution got here as Florida continued to grapple with a property insurance coverage disaster, pushed partially by the state’s vulnerability to pure disasters and the intensification of maximum climate occasions.
Florida lawmakers had sought to deal with these challenges with sweeping property insurance coverage reforms in an try to stabilize the market and encourage insurers to stay within the state. Nevertheless, specialists mentioned it’d take a while earlier than the complete impression of those modifications was felt.
In 2022, Progressive selected to not renew some 56,000 insurance policies, in response to Triple-I.
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