TAMPA, Fla. — As Florida homeowners continue to deal with a property insurance crisis, experts are weighing in on the changing marketplace and what you should do if your coverage is impacted.
"Our existing insurance company dropped us, and we needed to get new insurance,” said Larry Sosa, a homeowner in Lutz.
Sosa knows the state’s property insurance problem all too well.
"We shopped, and we shopped, and a lot of companies didn't want to take us,” said Sosa. “We finally got one. We're paying more than we were paying, but we went through a lot of hardship to try and get insurance."
While Sosa doesn’t have Farmers Insurance, he understands the headache some customers will now have to deal with.
Farmers Insurance told state officials their decision to discontinue offering Farmers-branded auto, home, and umbrella policies in the state. It’s an ever-changing landscape that can put homeowners in a pinch.
At the end of 2022, average annual property insurance premiums had risen to more than $4,200 in Florida, which is triple the national average. About 12 percent of homeowners in the state didn't have property insurance, compared with the national average of 5 percent, according to the Insurance Information Institute. At least six insurers went insolvent in Florida last year.
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"24 to 36 months ago, the marketplace was just so open to where you plug an address in, and you’d get 15 to 30 quotes coming back, and today, you plug an address in, and you’re just like fingers crossed could I just get two or three options,” said Jake Holehouse, the principal agent with HH Insurance Group.
Holehouse shared how his job has changed over the last few years.
"Three years ago, it was, you're looking at maybe a five to ten percent type of annual rate increase, and now it's become like, man you are so lucky that you got a 35 percent rate increase because at least you got a renewal offer,” said Holehouse.
Farmers Insurance said affected customers will get notifications detailing when their coverage will end and learn their options for replacement coverage.
"Please don't wait until the policy lapses,” said Evelyn Pimplaskar, the Editor in Chief and Director of Content for Insurify.
Insurify is an online comparison marketplace for insurance. If you’re impacted, Pimplaskar said your best bet is to make sure you line up another policy as quickly as possible.
She said it’s also a good idea to take whatever steps you can to protect your home from damage.
"There's no timeframe on when you can cancel an old insurance policy and start a new one, so you don't have to wait until your policy is up for renewal,” said Pimplaskar. “You don't have to wait until your mortgage company gets involved. You can start shopping right away."