Jim Tynan, a homeowner in Ponte Vedra, Florida, had been with Allstate for 32 years. However, in January, Allstate informed him that they were going to drop him. Tynan had difficulty finding a new insurance provider, and when he finally did, the cost was 50% higher. Tynan, who lives just two miles from the ocean, worries about the possibility of his new insurance company dropping him as well.
The state of Florida has experienced four major hurricanes in the last four years, leading to a significant increase in insurance premiums and some insurers reducing coverage. Many residents are concerned about whether they will still have insurance after a hurricane hits. This uncertainty has left homeowners like Tynan and others across Florida anxious about potential price hikes, exclusions, or losing insurance altogether.
Allstate stated that they are working with regulators to protect as many customers as possible and find alternative coverage for those they cannot cover. The average homeowner premiums in Florida have risen by nearly 60% between 2019 and 2023. With major insurers decreasing coverage, the state-backed insurer, Citizens, has taken on more business.
Following the recent hurricanes, there is a growing unease among insurers about continuing to provide coverage in Florida. Hurricane Milton, which hit Florida’s Southwest coast shortly after Hurricane Helene hit the Northwest coast, has intensified these concerns. This situation could lead to more homeowners turning to Citizens, the insurer of last resort.
Citizens has reassured policyholders that they will be able to pay claims without having to levy assessments on non-policyholders. Despite the challenges posed by the consecutive hurricanes, private insurers like State Farm, Universal Property & Casualty Insurance, and Security First Insurance have expressed their commitment to the Florida market.
While larger insurers are confident in their ability to pay claims, homeowners like Sherri Hansen in the Florida Keys are grappling with the fear of losing their homes due to insurance uncertainties. The aftermath of the hurricanes has raised questions about the stability of the insurance market in Florida and the future of homeowners’ insurance costs in the state.