The Florida home insurance market has been in a state of recent turmoil, with several insurers leaving the market, dropping risky policies and tightening up eligibility requirements.
Other national carriers, such as Allstate, Nationwide and State Farm, write policies in Florida through another resource, according to John Espenschied, owner of Insurance Brokers Group. Those companies are non-admitted carriers, meaning the state does not back a company or the company may not follow state insurance regulations.
To reduce the risk of having your policy canceled, Jeff Caesar Chukwuma, founder and senior partner at Chukwuma Law Group in Florida, recommended homeowners “make sure their roof is in good shape by regularly inspecting it and making minor repairs before they become major ones” and replacing your roof before it reaches the 15-year mark.
Although several insurers have left Florida, eight new home insurance providers have entered the market according to the OIR’s most recent update. Additionally, the insurance companies we recommend enjoy a solid financial reputation and are known for offering dependable coverage to Florida residents.
Which Insurance Companies Are Pulling Out of Florida
According to News4JAX, 16 property insurance providers have stopped writing new policies in Florida in 2022 and 2024. Among those companies, AIG ceased insuring new properties along Florida’s shoreline, and Farmers Group stopped writing new policies statewide entirely.
According to the Pensacola News Journal, other providers that have withdrawn from or limited property insurance policies in Florida include AAA, Bankers Insurance, Centauri Insurance and Lexington Insurance, a subsidiary of AIG.
As of February 2024, we are unable to request quotes from Liberty Mutual using Florida zip codes, although no official statement has been made by the company.
Why Are Home Insurance Companies Leaving Florida?
Home insurance companies are leaving Florida because prolific natural disasters in the state have caused insurers to rethink coverage responsibilities. According to the Florida Division of Emergency Management, the most common disasters in Florida include floods, hurricanes, tropical storms, severe thunderstorms, tornadoes and wildfires. Florida also ranks above every other state for the most tornadoes per square mile. Farmers and AIG cited catastrophe losses from disasters like hurricanes and floods as reasons for their decisions.
