Analysts predict more insurance companies may leave Florida after Hurricane Ian

Six property insurers have exited Florida so far this year, and industry analysts expect more to leave by the end of 2022.

Florida’s property insurance market was already in crisis before Hurricane Ian, and the storm could make a bad situation worse.

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Some supposed insurance policies can be harder to find and more expensive to start.

Mark Friedlander is with the Insurance Information Institute.

“There are very few options in the Florida insurance market right now…” Friedlander said. “It is very possible that some of the smaller regional insurers that write home business in Florida will exhaust their profits as a result of the losses from Ian.”

“If that’s really the case, then we’re going to lose more of these smaller regional insurers,” he said.

According to Friedlander, if that happens, Florida could potentially lose several of these smaller regional insurers by the end of this year.

“Typically, this happens pretty quickly because claims are filed so quickly,” Friedlander said.

Florida’s insurance market was already struggling before Hurricane Ian. Insurers argued that excessive lawsuits and cap schemes drove up prices before the storm.

Right now, the average home premium in Florida is the highest in the U.S. at more than $4,200 a year, nearly three times the U.S. average, which is just over $1,500 annually, according to an analysis by the institute.

“Looking a little bit down the road, meaning 2023, we could potentially see average increases of 40% or higher here in Florida,” Friedlander said.

Every homeowner in the state has already seen increases over the past few years.

This year, the statewide average for insurance increases has been 33%, which is three times the U.S. average of a 9% increase, Friedlander said.

Before the state declares an insurance company insolvent, the state will work with another insurance company to absorb all of those policies.

Typically, you don’t need to do anything.

You will receive a letter in the mail from the new company saying that your policy will be honored with the same coverage for the same period.

At the end of the term, the new company will send you a letter with their renewal agreement if they are still writing policies.

Then you can decide if you want to stay with them or shop around.

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