Four big storms have slammed Florida in the last four years, driving up insurance costs and prompting some insurers to reduce coverage. Residents cleaning up after storms or living near water have another concern: will they still be insured?
Tynan stated that he has not been directly affected by a hurricane, but is two miles from the ocean.
“I live in fear I’ll get a letter from my new company telling me they’re going to fire me, too,” Tynan said following the recent hurricane. “It’s very scary.”
Six additional homeowners contacted by Reuters in places like the Florida coastlines and the Keys expressed concern that the back-to-back hurricanes will result in further price increases and exclusions. Worse, they feared they would lose their insurance entirely.
Allstate stated that it cooperated with regulators to protect as many consumers as possible. For individuals it cannot cover, “We work with other carriers to offer alternative coverage offerings.”
A number of Florida homeowners have faced a difficult scenario in obtaining insurance. Between 2019 and 2023, Florida’s average homeowner insurance rates increased by over 60%. Some large insurers have restricted coverage. Meanwhile, Citizens, the state insurance, has increased its business.
Analysts and insurance experts anticipate increased concern about insurers following Hurricane Milton, which made landfall on Florida’s southwest coast just 12 days after Hurricane Helene made landfall on Florida’s northwest coast.
“This is…certainly going to cause insurers to be concerned about continuing to insure in the market,” said Marc Ragin, associate professor of risk management and insurance at the University of Georgia’s Terry College of Business.
The increased number of hurricanes may raise reliance on Citizens, a state-backed nonprofit insurer that is considered the last resort.
Florida Governor Ron DeSantis has already expressed concerns about how the insurance would pay claims if major storms struck. Citizens spokesperson Michael Peltier stated that it will always be able to pay since it was designed to first collect surcharges on policyholders and then, if necessary, assessments on non-policyholders. He stated that approximately 80,000 claims connected to Milton have been received thus far, and that the company expects to be able to pay them all without levying fees on non-Citizens policyholders.
