It is becoming increasingly frustrating for homeowners trying to find affordable property insurance, and now some Floridians are getting unwanted news telling them Nationwide Insurance will not be renewing their home insurance policy.
"Our existing insurance company dropped us and we needed to get new insurance," said Larry Sosa.
ABC Action News heard from many of you all year about the frustrations you’ve faced with insurance.
"We shopped and we shopped and a lot of companies didn't want to take us. We finally got one. We're paying more than we were paying, but we went through a lot of hardship to get insurance,” said Sosa.
Insuring a home in Florida is getting more challenging. Nationwide has joined a list of companies that are ending some homeowner insurance policies in the state.
The announcement highlights the insurance crisis Florida residents have been facing for the past 18 months.
“They’re just not making money in Florida. The weather losses, as well as the litigious environment in Florida, has made it very unprofitable for a lot of homeowner insurance carriers,” said Karyn Roeling, president/CEO of Seibert Insurance Agency.
According to the Insurance Information Institute, Florida accounts for 79% of insurance lawsuits filed, with only 21% in the rest of the country.
ABC Action News reached out to Nationwide about the decision not to renew some of its Florida policies.
In an emailed statement, Nationwide leaders said:
Nationwide is strong and stable and on path to long-term growth. Like everyone else in our industry, we are taking the necessary actions that ensure long-term viability and allow us to offer protection at a competitive price to customers across all our business lines who represent many types of needs.
Inflation and market disruptions impact insurance just like they do any other business. In many instances, this means we are updating our rates. It also means we are being more selective about where we write certain amounts of business and the amount of overall risk we are willing to write. These are tough decisions, but the right decisions that will enable us to be here long term for our customers.
We’ve been through economic cycles like this many times during the past 97 years. Our company is known for making well-informed decisions that allow us to be here long-term and position us to come out stronger.
If you have been notified that your insurance policy will not be renewed, Roeling said it's important to start looking for replacement coverage right away. She recommends first having a 4-point inspection completed to get a better quote.
“That will tell you how old things are that the new insurance company really cares about, which is the roof, the HVAC system, the plumbing, and electrical,” Rowling said.
Roeling said to be prepared for a large rate increase. A depleted supply is partly responsible for driving up premiums.
“The pricing that we’re getting is three times what they were paying with Nationwide and unfortunately, the coverage is somewhat limited to what they had,” Roeling said.
While many companies are still reluctant to write new policies in Florida, there are positive signs.
“We are starting to see some light at the very end of a very long tunnel,” said Insurance Information Institute spokesperson Mark Friedlander.
According to the Insurance Information Institute, the Florida Insurance Regulator approved six new companies to begin writing property insurance policies in Florida starting in 2024. Those companies are Tailrow Insurance Company; Mainsail Insurance Company; Orion 180 Insurance Company; Orion 180 Select Insurance Company; Orange Insurance Exchange and Condo Owners Reciprocal Exchange.
Florida's insurer of last resort, Citizens, is also offloading policies.
“In the past, in most cases, if your company dropped your policy at the end of your term, you were handed to Citizens. You had no choice but to move to Citizens. Now, starting in the first quarter of 2024, you will have some options. So, it will be a brighter picture for many consumers,” said Friedlander.
