The Florida insurance crisis: Why are insurance companies leaving Florida?

Q: Does State Farm insure homes in Florida?

Yes . State Farm has stated that it intends to continue offering policies in Florida.

Q: Is Edison Insurance pulling out of Florida?

No . There is no indication that Edison Insurance plans to leave Florida.

Why are insurance companies leaving Florida?

The big question is: Why are insurance companies pulling out of Florida? The reasons behind the home insurance crisis in Florida are complicated, but several key factors have a big impact.

Soaring litigation costs. The Insurance Information Institute (Triple-I) published a brief on the Florida insurance crisis. It noted that a 2017 State Supreme Court decision allows courts to award a plaintiff's attorneys two to two-and-a-half times their hourly billing rate when courts rule in favor of policyholders. The result is more lawsuits. Triple-I says Florida accounts for 79% of insurance lawsuits filed, with only 21% in the rest of the country.
An increasing number of reinsurers who have chosen to retreat from the state in the face of rising litigation. The Florida market is home to several smaller insurers who rely heavily on reinsurers and the booming housing market along coastal counties, which are more prone to flooding and hurricanes.
Severe weather. Those hurricanes are incredibly costly; Hurricane Ian caused $113 billion in damage and Hurricane Helene and Milton caused billions more.

The bottom line? Florida homeowners are projected to pay higher rates and find it more difficult to get coverage at all as Florida insurance companies in trouble look to reduce risk or leave altogether.

Which insurance companies pulled out of Florida?

Here's a list of insurance companies leaving Florida, either by choice or due to insolvency. Many have already left.

Farmers
Southern Fidelity
Weston Property & Casualty
United Insurance Holdings
FedNat
Bankers
Lighthouse Property Insurance
Avatar Property & Casualty
Lexington
St. Johns

Following several years of companies becoming insolvent or pulling out of Florida, Farmers was the last company to announce a pull-back in July of 2023. The national carrier no longer writes home insurance in Florida under the Farmers name, although subsidiaries like Foremost and Bristol West continue operations.

Which home insurance companies are still available in Florida?

While the situation in Florida is alarming for homeowners, fortunately, many insurance carriers still provide coverage in the state. They include recognizable names like State Farm, Travelers, First Florida, and Nationwide.

In December of 2023, six new companies were approved to take part in the Citizens takeout program, moving policies away from the state-run insurer. The new companies are:

Edison Insurance
TypTap Insurance
Florida Peninsula
SafePoint Insurance
Slide Insurance
American Traditions

To help Florida homeowners find insurance, Insurance.com provides a comprehensive look at the Florida home insurance market along with an analysis of insurance rates and top providers.

Charles Nyce, a professor at the Florida State University College of Business specializing in catastrophic-risk financing and corporate-risk management, says that the measures introduced by State legislators in May could begin to ease the Florida insurance crisis. But it’s pretty likely to get worse before it gets better.

“The difficulty is, there are no easy fixes,” says Nyce. “The measures (that the state introduced) are going to help, but it’s tough to turn the market around quickly."

PEOPLE ASK

Why are Florida homeowners insurance rates increasing?

The high cost of insurance claims in Florida due to severe weather, and the high risk of further storms, has greatly contributed to the rise in home insurance rates. Additionally, the state has a high rate of insurance litigation that makes coverage more costly.

What is the Florida government doing about home insurance rates?

Several legislative changes over the past few years have been passed in an effort to stabilize the Florida home insurance market and bring down rates. Among them:

At the end of 2022 and in the wake of Hurricane Ian, the Florida government passed new laws that include requirements for flood insurance and shore up reinsurance to prevent insolvency.
In 2023, a law was passed eliminating one-way attorney fees in certain insurance-related lawsuits, a law that is expected to reduce excess litigation.
In 2024, The My Safe Florida Home program was expanded to provide matching grants of up to $10,000 for Floridians to make hurricane readiness upgrades to their homes and earn discounts on their insurance rates. Additional budget for the program was approved.

Is the Florida insurance market on its way to recovery in 2025?

The December 2024 Chamber of Commerce summit found that rates are starting to stabilize, believed to be the results of the new legislation. Legislation can take time to work, and rate stabilization appears to be finally happening.

The new partnership between Embark and Security First Insurance will help home builders and buyers by making insurance quoting a part of the homebuying process. The move is another sign of recovery in the market as insurers find new ways to help homebuyers.

PEOPLE ASK

How is the Florida insurance crisis affecting homeowners?

Many homeowners have lost their insurance and been forced to find coverage elsewhere, often with state-back Citizens Property Insurance. The insurance crisis has also affected the real estate market, with buyers finding it difficult to find the insurance required by the mortgage for closing, making it hard to buy or sell a home in some areas.

What should you do if your home insurance company is pulling out of Florida?

Here are some helpful steps to help you take action if you get a notice that your insurance policy is being canceled.

Call your insurance company. Speak to a representative or agent and find out the reason for the cancellation. Find out how long you have to get new coverage. A company going out of business vs. one pulling out of the state may have different timelines.
Start getting quotes. It’s important to start gathering new quotes right away. Many other Florida homeowners are in the same situation, all trying to get new coverage simultaneously. Start looking immediately to ensure you have time to choose the best policy.
Complete any repairs. Finding new coverage will be easier if your house is in good condition. Florida home insurance companies will also look at any weather-proofing work you have done.
Consider getting help. If you think you’re being treated unfairly or are struggling to get new coverage, contact the Florida Department of Insurance Regulation (FLOIR). They can also be of assistance in helping you find new coverage.

An insurance agent can help you find new coverage, but it's important to start right away.

“We’ve never seen this number of insurance companies go out of business in such a short period of time,” Sands says. “And when one of the insurance providers goes insolvent, we only have 30 days to rewrite all the policies. Agents end up working around the clock to try to get it done.”

Florida's insurer of last resort, Citizens Insurance, is an option if insurance is hard to find or not affordable.

For more information on the steps you can take, see Insurance.com’s guide to what happens if your homeowners insurance gets canceled.

ASK AN EXPERT

Expert answers to your questions

Our experts are here to provide real answers to your insurance questions. Is there something you want to know? Ask below.

Leslie Kasperowicz Executive editor.

Is Heritage Insurance going out of business?

No. Heritage took a step back from the Florida market, but in August of 2024 announced it would resume writing new policies in the state.

Can you get homeowners insurance in Florida?

Yes. Many companies, including big names like State Farm and Travelers, still write home insurance in Florida.

How are hurricanes affecting the Florida home insurance crisis?

Insurance companies face huge losses when a major hurricane strikes Florida, in some cases leaving companies insolvent or pushing them to leave the state and worsening the crisis.

Ask an expert

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Sources:

Insurance Journal. "Don't Touch Fla. reforms, Panelists Implore, but Maybe Tax Breaks for Elevated Homes." Accessed January 2025

Florida home insurance crisis: Frequently asked questions

How many insurance companies have left Florida?

More than a dozen insurers have either pulled out of Florida, reduced the number of policies in the state or gone out of business.

Is it hard to get homeowners insurance in Florida?

It depends on where in the state you live. Coastal areas are more difficult to insure than inland areas. The greater the risk of hurricane damage, the harder it may be to find coverage.