Progressive Home Insurance Phasing Out Policies in Florida
Yet another home insurance company is reducing its presence in the Sunshine State. Progressive announced that it will not renew some home insurance policies in Florida beginning next May, affecting about 100,000 policyholders. The move is expected to phase out 47,000 DP3 policies, usually for second homes, and 53,000 policies for “high-risk properties.” This change comes as competitors have gone bankrupt, pulled back from Florida, or raised premiums, despite efforts by state lawmakers to support the insurance market.
While Progressive insists that Florida property remains an important part of their business and that they have no plans to leave the state, they are working with state officials and the Florida Office of Insurance Regulation to rebalance their exposure while continuing to serve Florida homeowners. As part of an agreement, Loggerhead Reciprocal Interinsurance Exchange will offer replacement policies to those affected by Progressive’s decision.
Florida has faced challenges in the home insurance market due to destructive storms and hurricanes. Last year, Hurricane Ian made landfall in the Fort Myers area, becoming the third most expensive disaster-related recovery effort. This year, Hurricane Idalia also hit the state, adding to the financial strain. The cost of home insurance in Florida averages $6,000 per year, significantly higher than the national average of $1,700 per year, according to the Insurance Information Institute.
In response to the challenges faced in the Florida home insurance market, Governor Ron DeSantis signed into law legislation last year that aimed to provide a bailout to the industry. The legislation included provisions to create a $1 billion taxpayer-backed reinsurance program for insurance companies. Despite these efforts, home insurance costs in Florida remain high.
Progressive’s decision to phase out certain policies in Florida is another example of the challenges insurance companies face in the state. With hurricanes and storms causing significant damage and higher costs, insurance companies often have to adapt to these conditions. As the insurance landscape in Florida continues to evolve, it is essential for policyholders to stay informed about changes and seek alternative coverage options if necessary.