Progressive says it will not renew certain homeowners’ policies in Florida
Progressive says it will not renew certain homeowners’ policies in Florida | Insurance Business America
Property
Progressive says it will not renew certain homeowners’ policies in Florida
It will begin sending out non-renewal notices in December
Property
By
Mika Pangilinan
Progressive has announced that it will not be renewing certain homeowners’ insurance policies in Florida beginning May of next year.
A company spokesperson confirmed the move to local news channel WFLA and said Progressive has already initiated the necessary regulatory filings to enact the change.
The non-renewals will primarily impact DP3 policies that are typically for second homes, as well as other “direct and agency property policies.”
And while the spokesperson did not provide exact figures, the Insurance Information Institute (Triple-I) has projected that about 100,000 policyholders will be affected by the pullback.
This equates to 50% of the insurer’s current policies in the state, according to Triple-I, with the move impacting 47,000 DP3 policies and 53,000 policies for properties deemed as high risk.
The Progressive spokesperson said notices will be sent out to affected policyholders in December, while the first wave of non-renewals will take effect in May 2024.
“Florida property remains an important part of our Progressive Home business, and we have no plans to leave the state,” they noted further. “However, we have been working collaboratively with state officials and the Florida Office of Insurance Regulation to implement changes that allow us to rebalance our exposure while continuing to serve Florida homeowners.”
Florida lawmakers have sought to address these challenges with sweeping property insurance reforms in an attempt to stabilize the market and encourage insurers to remain in the state. But experts have said it might take some time before the full impact of these changes is felt.
Last year, Progressive chose not to renew some 56,000 policies, according to Triple-I.
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