AAA Insurance cuts ‘small percentage’ of homeowners in Florida

Unlike Farmers, which is phasing out Florida entirely, AAA said its “suppliers continue to write out new homes and auto insurance for our members in Florida.”

ST. PETERSBURG, Florida — Just days after more than 100,000 people were affected by Farmers Insurance leaving Florida, another major insurer left some homeowners in distress.

AAA Insurance confirmed on Thursday that it is laying off some Florida policyholders “to manage risk and catastrophe risk” — the same reason Farmers left. AAA said these “non-renewals” accounted for a “small percentage” of its business, but did not say how many people would lose coverage.

“We do not take this decision lightly, but it is necessary to confirm our commitment to the state and those we insure. We recognize that this is a difficult time for those affected. AAA insurance agents are ready and able to help them. find alternative coverage,” the company wrote in part.

In a statement, an AAA spokesman explained that last year’s hurricane season, combined with rising costs due to inflation and “excessive litigation,” made it more costly for all insurance companies in Florida to operate.

“We are encouraged by the legislative changes that have recently come into force and we believe that they will bring positive results. It will take some time for these improvements to be fully implemented, and until they go into effect, AAA, like all other service providers in the state, is being forced to take tough action. risk and disaster risk management solutions,” the statement said.

Unlike Farmers, which is phasing out Florida entirely, AAA said its “suppliers continue to write out new homes and auto insurance for our members in Florida.”

The actions of AAA and Farmers are part of a larger insurance crisis that continues to haunt Florida. The State Office for Insurance Regulation (OIR) currently has about 18 other insurance companies on its watch list.

Under state law, consumers must be notified by their insurers 120 days prior to refusing to renew. So what steps should Florida residents take if their insurance coverage ends?

We spoke with Kathy Walsh, owner of Coast to Coast Insurance in Tampa, who said the first step is to call your insurance agent to see if they offer other options.

Check out Walsh’s full list of tips on what to do if you lose coverage.

Content Source