Florida Tops #1 for Homeowner Insurance Non-Renewals
A recent report from Insurify found that Florida is number one in the country when it comes to homeowner insurance non-renewals, adding to the Sunshine States home insurance problems.
According to the Insurify data, non-renewals in Florida have almost tripled in the last five years with non-renewals jumping up a shocking 280% from 2018 to 2023. This translates into a non-renewal rate of 2.99% in 2023.
Louisiana grabbed the second spot with a non-renewal rate of 1.8% which is an entire percentage point lower than Florida.
A non-renewal happens when insurance company decides not to offer a policyholder a new policy when their previous one expires. Insurance policies are typically in force for a year and at the end of the term an insurer will offer to renew the policy with the same terms as the previous policy, sometimes with changes in the terms, or in some cases, they will not offer a renewal of the policy, forcing the homeowner to find coverage with a different insurer.
Due to rising premiums and non-renewals, many Floridians are choosing to go without homeowners coverage, according to recent data, roughly 20% of Florida homeowners are leaving their homes completely uninsured.
As insurers try to reduce and rebalance their risk exposure to Florida, due to increasing severe weather events they are increasing the number of non-renewals.
“I don't want to sugarcoat it: It's really hard - especially in high-risk areas of Florida, sometimes finding new coverage affordably can be a challenge. So, I'm not telling anyone to move, but it may be that this climate risk is starting to kind of price people out of certain regions.”” said Insurify Data Journalist Julia Taliensin, one of the reports’ authors in a recent Central Florida Public Media article.
The report also included other key findings:
- The projected annual cost of homeowners insurance in Florida will hit $15,460 in 2025, nearly five times the national average.
- Despite the high cost, Florida home insurance premiums decreased by about an average of 3% last year.
- In 2024, weather catastrophes were responsible for 97% of insured losses worldwide.
According to Taliesin, homeowners do have a few options if they have been non-renewed or their coverage has become unaffordable. Citizens Property is the state-run insurer of last resort where homeowners can get coverage if they cannot find it in the private market. Florida also offers the My Safe Florida Home program which offers free inspections and upgrade advice for homeowners to make their homes safer and qualify for lower insurance rates.
“If someone's really on their last leg, it is very possible that they would be able to find coverage through a state-run program, like Citizens. That's kind of what it's made for, right? But that doesn’t mean it’s cheap,” Taliesin said in the Central Florida Public Media article. “Florida does have programs available to homeowners to help fortify their homes, and many insurers offer discounts on installing storm mitigation measures.”
If you have been non-renewed there are other options available to you. According to Taliesin homeowners should consider shopping around with local insurance companies, smaller insurers, and consider banks for loans and credit lines that could help pay for expensive repairs or the necessary maintenance that keeps a home insurable.
Related Florida News
- Florida Property Insurance Companies are Profiting. Do homeowners get a refund?
- Competition Increases as Two New Property Insurers Start in Florida
- Florida Tops #1 for Homeowner Insurance Non-Renewals
- SAMPL Tool Helps Florida Homeowners Build Stronger and Safer Homes
- Florida Property Insurer Requests 31% Rate Increase
