Insurance Companies Are Pulling Out of Florida
If you own a home in Florida, you’ve probably noticed the insurance mess.
Carriers are cutting policies faster than new ones appear.
Letters arrive out of nowhere saying “your coverage will not be renewed.”
It’s not random.
It’s math, risk, and politics rolled together.
Florida has become one of the hardest states to insure. Hurricanes, fraud, and reinsurance costs all collide at once.
Over a dozen carriers have gone bankrupt or exited the state completely in the past few years.
The few that remain are hiking premiums or cherry-picking newer homes only.
Why Insurance Companies Are Leaving
The reasons are ugly and simple:
- Roof Rules: If your roof is older than 15 years, most insurers treat it as a liability even if it doesn’t leak.
- Storm Exposure: Every major storm season costs insurers hundreds of millions. Many can’t recover.
- Fraud and Lawsuits: Florida has led the country in property insurance litigation. Too many contractors and attorneys abused loopholes.
- Reinsurance Costs: Insurance companies buy their own insurance called reinsurance, and those premiums have exploded.
- Aging Homes: Outdated wiring, plumbing, and windows push risk scores higher. Some carriers just drop those properties completely.
What Happens When You Lose Coverage
Once your insurer cancels, your mortgage lender gets notified.
If you don’t replace coverage immediately, they’ll force-place a new policy at triple the cost and half the protection.
If you’re mortgage-free, the risk is even worse.
One strong storm, one roof leak, one fire, and you could lose everything with zero help.
Here’s the catch. Buyers need insurance to get financing.
An uninsurable house can’t sell through the normal MLS route.
That leaves two options: fix everything at retail cost or sell for cash and be done with it.
Example from the Field
A homeowner in Port Charlotte lost coverage because their shingle roof hit 16 years old.
Every quote they got was between $8,500 and $12,000 per year.
No lender would touch it, and hurricane season was 30 days away.
They called us.
We verified the payoff, closed in 9 days, replaced the roof after closing, and they walked away with $41,000 cash.
No waiting. No premium shock. No storm stress.
How to Protect Yourself Right Now
If you still have coverage, don’t wait for a cancellation letter.
Here’s what to do:
- Check your renewal date today. If it’s within 60 days, start shopping now.
- Order a Four-Point Inspection. It gives you proof of condition if a carrier challenges you.
- Get ahead of roof or electrical issues. Don’t wait for the insurer to flag it.
- If the numbers stop making sense, sell before you lose leverage.
Cash buyers like FL Home Buyers don’t need insurance or inspections.
We buy as-is, pay closing costs, and get deals done before the next hurricane season resets everything.
The Real Cost of Waiting
Every month you delay can mean:
- 5 to 10 percent higher renewal premiums
- Larger deductibles
- More exclusions on roof, water, or wind damage
Once a home is flagged as uninsurable, it’s off the financing grid.
You’re left chasing cash buyers or paying retail for full repairs.
That’s why most sellers who contact us are done playing the waiting game.
Bottom Line
Florida’s insurance crisis is turning regular homes into financial traps.
If your premiums are rising faster than your income or your carrier just dropped you, there’s still time to act.
Sell before the next storm season.
Let the buyer deal with the repairs, the risk, and the paperwork.
You walk with cash and peace of mind.
Need an exit plan before your policy expires?
Call (561) 258-9405 or request your cash offer today.
FL Home Buyers pays off taxes, liens, and insurance costs at closing so you can move on clean.
