Insurance Crisis Looms Thousands of Florida Homeowners Face Coverage Termination

Insurance Crisis Looms: Thousands of Florida Homeowners Face Coverage Termination

With only a few weeks remaining before the beginning of hurricane season, the house insurance companies of thousands of homeowners in Southwest Florida have decided to terminate their coverage.

This week marked the beginning of the distribution of letters from ASI-Progressive. The corporation announced in the previous year that it intended to get rid of around 100,000 policies. John Cunniff, who resides in Bonita Springs, stated that he had the opportunity to get one of the letters and promptly started looking for alternative coverage.

The statement merely stated that they were decreasing their exposure to hurricanes, according to Cunniff. He stated that a large number of people are in the same situation, and in many instances, they are being compelled to pay a higher premium for coverage.

In his statement, Cunniff stated, “I believe that is really a big problem for a lot of people.”

A great many of individuals are taken aback by the letters, despite the fact that Progressive had previously indicated that they would be reducing their presence in Florida due to the risks involved. Doug Nellans, an agent working for The Insurancenter in Fort Myers, stated that he has hundreds of customers who will be affected by the transfer.

According to Nellans, “Fortunately, ASI- ASI-Progressive has formed a partnership with another insurance company in order to effectively rescue a significant number of policyholders and provide them with an alternative policy prior to the expiration date.”

Despite the fact that many customers are concerned about the possibility of experiencing price shock when switching to a new insurance provider, Nellans stated that this should not be an immediate concern for individuals who are being picked up by Loggerhead Protection.

“Loggerhead is aware of this, and they have committed to making every effort to lessen or eliminate the sticker shock that they experience, at least during the beginning stages of this transition,” Nellans explained. However, a large number of customers will be required to switch to a different insurance provider, which may not be an easy task given that Cunniff stated he had limited options available to him.

According to him, “Coverage was extremely limited.”

In light of the fact that there are only 34 days left until the beginning of hurricane season, a lot of individuals are rushing around trying to make sure that they have a company in place when their policy runs out. During May and June, it is anticipated that Progressive will continue to send out additional letters of refusal to renew.

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