Progressive plans to non-renew 100K Florida home insurance policies. What to know (2024)

FAQs

Is Progressive canceling homeowners insurance in Florida? ›

Last fall Progressive confirmed to ABC Action News that they will not renew policies in Florida beginning in May of 2024 to "rebalance our exposure" they told us in a statement. "I was shocked, I was stunned," Kasdan said. "There may be a time where as much as we love Florida we may not be able to stay here."

Insurers can cancel policies or choose not to renew at the end of a policy term. Non-renewal can occur after multiple accidents or filing too many claims. At the same time, more immediate cancellations can result from serious issues like loss of driving privileges or insurance fraud.

“Florida property remains an important part of our Progressive Home business, and we have no plans to leave the state,” they noted further.

Non-renewal is when you or the insurance company decides not to renew the policy when it expires. Insurers typically must give you at least 30 to 60 days' notice if they decide not to renew your policy.

Earlier in July, Farmers Insurance announced that it is no longer offering new business or renewing any of its auto, home and umbrella policies in Florida. In mid-2022, Bankers Insurance Company reported its exit from Florida, only to be followed by AIG and Lexington Insurance, a subsidiary of AIG.

Florida's Legislature and Governor took aggressive action to solve this problem, passing major property insurance legislation in 2021 and 2022, followed by major legal reforms and consumer protections last year. “We know these reforms are working.

A policy could be non-renewed for a variety of reasons—from a company deciding to discontinue that line of insurance to a property no longer meeting an insurer's underwriting guidelines—so you shouldn't necessarily think the non-renewal is because of something you did.

If the insurance company cancels your policy, you'll usually receive a car insurance refund unless they cancel the policy for non-payment. If non-payment occurs, you will not receive a refund and will continue to owe the insurer any unpaid premiums.

If your insurer nonrenewed or cancelled your policy because your house needs repairs or you filed too many claims, you may have difficulty finding an insurance company willing to insure your home.

Why is my homeowners insurance so high in Florida? ›

Florida homeowners insurance premiums have spiked in recent years. A combination of inflation, natural disasters, and lower competition is to blame. Homeowners can shop around with different insurers and consider raising their deductibles to save money on policy costs.

However, it is important to note that Florida law does impose strict notice requirements on insurance companies. If an insurance company has decided not to renew a policy, then they have a legal duty to provide the policyholder with written notice, detailing the non-renewal, within 45 days of the coverage expiring.

While a non-renewal is often a proactive business decision by the insurer, a cancellation is usually a result of policy violations or non-compliance by the policyholder.

627.728, shall give the first-named insured at least 45 days' advance written notice of nonrenewal or of the renewal premium. If the policy is not to be renewed, the written notice shall state the reason or reasons as to why the policy is not to be renewed.

When your policy lapses, you'll have to pay for any losses out of pocket. Not all homeowners insurance providers allow for late payments. Having a policy lapse on your record could lead to higher rates or denial of coverage going forward.

Common reasons for nonrenewal of home insurance include a history of frequent claims, failure to maintain the property, living in a high-risk area prone to natural disasters, changes in underwriting guidelines or risk assessment by the insurance company and failure to pay premiums on time.

Seven property insurers in Florida went bankrupt in 2021 and 2022. The bankruptcies left thousands of homeowners scrambling to get new coverage, which often came with a big increase in cost. Worse, many had outstanding claims for hurricane damage that had not been addressed.

Progressive offers plenty of incentives to help drivers in Florida get the best car insurance. Our auto insurance customers earn an average of seven discounts, and we're the #1 combined personal and commercial auto insurance company. Looking for the cheapest car insurance in Florida?

Three primary factors are driving the insurance challenge. First, natural disasters are becoming more common and costly. Second, the price of reinsurance is skyrocketing. And finally, Florida's litigation-friendly environment compounds the issue by making it easy for customers to sue their insurers.