Progressive, a prominent insurance provider, has recently made an announcement that will impact homeowners in Florida. The company is “rebalancing” its operations in the state and will be non-renewing about 100,000 home policies. This decision has significant implications for policyholders and the overall insurance market in Florida.
Progressive’s ‘rebalancing’ actions
In a recent update to its agents, Progressive stated that it will no longer offer dwelling/fire or DP3 coverage in Florida. Additionally, the company will be nonrenewing certain “high-risk” property policies. The Insurance Information Institute has confirmed that approximately 47,000 DP3 policies and 53,000 “high-risk” property policies will be affected by this decision.
To address the needs of the impacted policyholders, Progressive has partnered with Loggerhead Insurance, based in Tampa, to offer replacement coverage. Nonrenewal notices for DP3 policies and other direct and agency property policies will be sent out starting in late December. Policyholders will have until May 2024, just before the start of the 2024 Hurricane Season, to find alternative coverage.
Progressive’s rationale for the decision
According to a spokesperson from Progressive, these actions are necessary to ensure the company’s ability to write business in Florida in a meaningful way. The company believes that these measures will ultimately lead to a stronger, more stable, and more competitive Progressive Home business for consumers and independent agents in the long run.
Impact on Florida’s property insurance market
This move from Progressive comes at a time when more insurance companies are entering the Florida market. Lawmakers and officials in the state have pointed to legislation passed in recent years as encouraging factors for these companies. However, the challenges in the insurance market persist.
State Representative Bob Rommel acknowledged that while significant changes have been made to the insurance and tort side, attracting carriers that have confidence in doing business profitably in Florida takes time. He also highlighted the fact that many insurance companies have faced financial difficulties, with some going out of business.
Florida Insurance Commissioner Michael Yaworsky emphasized that although progress has been made, there is still much work to do. He highlighted the entry of five new carriers into the market, which indicates growing belief in the legislative reforms. These positive steps, however, are continually countered by companies seeking to reduce risk and make major changes to their operations.
FAQs
Q: How many home policies were non-renewed in Florida in 2022?
A: About 56,000 home policies were quietly non-renewed across the state in 2022.
Q: Will Progressive continue to insure homeowners in Florida?
A: Yes, Progressive has no plans of leaving Florida and will continue to provide coverage for more than 200,000 Floridians and their homes.
Conclusion
Progressive’s decision to non-renew a significant number of home policies in Florida is another blow to the state’s already tumultuous homeowners’ insurance market. The company’s actions are driven by the need to rebalance its operations and build a more stable business in the long run. However, this move adds to the disruptions already experienced by homeowners in the state, with other insurance companies also making significant changes. As Florida works towards stabilizing its insurance market, policyholders must be proactive in seeking alternative coverage to protect their homes.
