The insurer has confirmed that it wasn’t leaving the state but that it wouldn’t always renew coverage.
Progressive has confirmed that it has decided not to renew some home insurance policies in Florida once they reach their expiration date.
Regulatory filings from the company have already started and notices will start being issued soon.
A spokesperson from Progressive has confirmed the home insurance company’s intention to stop renewing certain policies in Florida. It has started the necessary regulatory filings for this move and will be issuing the first wave of non-renewal notices starting in December. This will apply to the policies that are set to expire in May 2024. From there, the notices will continue to be issued based on expiry date on a rolling basis across the following 12 months.
The type of policies impacted include DP3 (dwelling/fire) coverage and other forms of “direct and agency property policies,” said the spokesperson. Progressive didn’t immediately release any data regarding the number of affected policyholders in the state.
Progressive still intends to continue selling home insurance in Florida, despite the non-renewals.
“Florida property remains an important part of our Progressive Home business, and we have no plans to leave the state,” said a statement from the insurer’s spokesperson. “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.”
The affected policyholders will be offered the opportunity to purchase replacement home insurance policies instead. Those are sold through Loggerhead Reciprocal Interinsurance Exchange.
“The actions we’re taking are necessary to ensure that we can continue to write business in Florida in a meaningful way — and we expect these actions will better position us to build a stronger, more stable, and more competitive Progressive Home business for consumers and independent agents in the long run,” explained the spokesperson.
Florida lawmakers passed two different broad reforms for property insurance in 2022, with the intention of providing improved market stability and discourage insurers from wanting to leave the state. That said, insurers are continuing to leave or, at the very least, reduce the amount they sell there.