AAA backs off offering home, car insurance to Florida residents
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5 months ago
RIGHT IN THE MIDST OF HURRICANE SEASON —
SOME FLORIDA RESIDENTS ARE BEING **DROPPED FROM THEIR INSURANCE COMPANIES.
IT’S A TREND WE’VE BEEN REPORTING RECENTLY —
BIG-NAME INSURANCE COMPANIES LIKE A-I-G, ALL-STATE AND STATE FARM HAVE STOPPED TAKING ON NEW CUSTOMERS IN CERTAIN HIGH-RISK AREAS — LIKE IN FLORIDA DUE TO A HIGH FLOOD RISK OR CALIFORNIA BECAUSE OF HIGH FIRE RISK.
LAST WEEK FARMERS INSURANCE ANNOUNCED IT WAS PULLING OUT OF THE SUNSHINE STATE — JUST DAYS LATER — TRIPLE A SAID THEY ARE FOLLOWING SUIT — NOT RENEWING HOME OR AUTO INSURANCE POLICIES FOR SOME OF ITS FLORIDA RESIDENTS.
IF YOU HAVE A HOME LOAN — YOU HAVE TO HAVE INSURANCE.
SO WHEN YOU’RE COVERAGE DROPS — THAT LEAVES YOU WITH FEWER CHOICES — AND HIGHER PREMIUMS.
A FLORIDA REAL ESTATE AGENT EXPLAINS THE SIGNIFICANT TOLL THIS PATTERN IS TAKING ON RESIDENTS WITH FIXED INCOMES.
“when you look at homeowners who they’re looking at their budget and they’re saying, okay, so we can afford this much a month, and now out of nowhere, that number is 50% higher. Unfortunately for some people, it’s two or 300% higher. There’s no money to make up that difference.”