Fifth Major Home Insurer Pulls Out Of Florida Market

CBS News reports:

AAA will not renew the auto and home insurance policies for some customers in Florida, joining a growing list of insurers dialing back their presence in the Sunshine State amid a growing risk of natural disasters.

“Unfortunately, Florida’s insurance market has become challenging in recent years,” the company said in a statement emailed to CBS MoneyWatch. “Last year’s catastrophic hurricane season contributed to an unprecedented rise in reinsurance rates, making it more costly for insurance companies to operate.”

Under Florida law, companies are required to give three months’ notice to the Office of Insurance Regulation before they tell customers their policies won’t be renewed. Already, homeowners in the state pay about three times as much for insurance coverage as the national average, and rates this year are expected to soar about 40%.

Read the full article.

Three days ago Farmers Insurance also announced that they were leaving Florida. DeSantis reacted bizarrely by saying insurers will return after the hurricane season.

We are witnessing the complete collapse of the property insurance market in Florida after Tallahassee lawmakers gave insurers a $2 billion dollar taxpayer funded bailout. DeSantis is now telling Floridians to “knock on wood” and to “wait it out.” https://t.co/7WSxetAwIr

— Thomas Kennedy (@tomaskenn) July 14, 2023