Jeffrey Wade
Nationwide Insurance has decided not to renew some of its Florida homeowners' insurance policies, joining a list of companies that are ending coverage in the state. The decision is due to the frequency and severity of climate and weather-related losses, with Florida accounting for 79% of insurance lawsuits filed. This has resulted in increased costs for carriers, which are passed on to policyholders in the form of rate increases or non-renewals. While Nationwide is not canceling policies, Floridians are facing challenges in finding affordable property insurance as companies implement restrictive new requirements to qualify for a new policy.
| Characteristics | Values |
|---|---|
| Does Nationwide write homeowners insurance in Florida? | No, Nationwide does not currently offer home insurance in Florida. |
| Why does Nationwide not offer homeowners insurance in Florida? | Due to the frequency and severity of climate and weather-related losses, Nationwide has experienced increased pressure to rebalance its portfolios to ensure it has money in reserves to pay claims. |
| What are the common home insurance claims in Florida? | Flooding and roof damage from hurricanes, water damage from severe storms, and fires caused by lightning. |
| What is the impact of non-renewals on Florida homeowners? | It has become increasingly frustrating for Florida homeowners to find affordable property insurance, with some facing challenges in getting coverage from other companies. |
| What are the alternatives for Florida homeowners? | Universal Property, State Farm, Florida Peninsula, Tower Hill, USAA, and Citizens Property Insurance are some of the biggest homeowners insurance providers in Florida, according to 2023 data from the NAIC. |
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What You'll Learn
- Nationwide is not offering new home insurance policies in Florida
- Non-renewals are due to circumstances beyond the company or customer's control
- Natural disasters and severe weather are the primary cause of non-renewals
- Florida accounts for 79% of insurance lawsuits filed
- There are still plenty of reputable home insurance carriers in Florida
Nationwide is not offering new home insurance policies in Florida
Nationwide has joined a list of companies that are ending some homeowner insurance policies in Florida. The company has notified its customers that their policies won't be renewed, with non-renewals starting on December 26, 2023. This means that Nationwide is currently not offering new home insurance policies in Florida.
Nationwide's decision to not renew some of its Florida policies is due to the frequency and severity of weather-related losses in the state. Florida has experienced more than its fair share of bad weather over the years, including hurricanes, severe storms, and lightning fires. These weather events have resulted in an increase in insurance claims, with insurers paying out an average of $15,000 per home insurance claim. The high number of claims has made it unprofitable for homeowner insurance carriers in Florida, and many companies, including Nationwide, have had to take action to ensure their long-term viability.
While Nationwide is not offering new home insurance policies in Florida, the company is still strong and stable and on a path to long-term growth. The company is taking the necessary actions to ensure it can continue to offer protection to its customers at a competitive price. In many instances, this means updating rates and being more selective about where they write certain amounts of business.
Florida residents have been facing an insurance crisis for the past 18 months, with increasing premiums and a depleted supply of insurance carriers. However, there are some positive signs for the future of the Florida insurance market. Legislative reform signed into law earlier this year is expected to improve the state of the market, although the full positive impact may not be apparent until 2025. In the meantime, Florida homeowners can explore other reputable options for home insurance carriers in the state.
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Non-renewals are due to circumstances beyond the company or customer's control
Nationwide has decided not to renew some of its Florida homeowner insurance policies. This decision has been attributed to circumstances such as weather losses and the litigious environment in Florida, which have made it unprofitable for insurance carriers. Florida accounts for 79% of insurance lawsuits filed, which has contributed to the company's selective approach to writing certain business amounts.
Non-renewals of homeowner insurance policies in Florida can be due to circumstances beyond the control of both the insurance company and the customers. For example, Florida's high-risk status for natural disasters, such as hurricanes, has led to non-renewals during the hurricane season. Insurers may choose to non-renew policies in such circumstances to mitigate their risks and ensure long-term viability.
In addition to natural disasters, non-renewals can also result from market disruptions and inflation, which impact the insurance industry. These factors can lead to rate increases and more selective underwriting practices. While insurance companies aim to provide protection at competitive prices, they must also ensure their long-term growth and stability.
Non-renewals can also occur due to factors related to the insured property or the policyholder's actions. For instance, if an insurer determines that the policyholder has caused unreasonable delays in repairing the insured structure, they may choose to non-renew the policy. Similarly, material misstatements or fraud related to a claim can also lead to non-renewal.
It's important to note that non-renewals are different from policy cancellations. Insurance companies generally cannot cancel a policy that is older than 60 days unless specific conditions are met, such as non-payment of bills or the discovery of fraud or inaccuracies on the application. Non-renewals, on the other hand, may be influenced by a combination of factors, including those beyond the control of the company and the customer.
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Natural disasters and severe weather are the primary cause of non-renewals
Florida has experienced 94 confirmed weather/climate disaster events with losses exceeding $1 billion each between 1980 and 2024. These events include drought, flooding, severe storms, tropical cyclones, wildfires, and winter storms. As a result of these natural disasters, insurance companies in Florida, including Nationwide, have incurred significant financial losses.
Nationwide has recently notified its customers in Florida that it will not be renewing their homeowners' insurance policies, citing natural disasters and severe weather as the primary cause. The company has stated that it is taking necessary actions to ensure long-term viability and competitive pricing for its customers. This decision by Nationwide is not an isolated case, as several other insurance companies have also left Florida or ended their homeowner insurance policies in the state due to similar reasons.
Homeowners in Florida are facing challenges in finding affordable property insurance, as many companies are reluctant to write new policies in the state. The high frequency of natural disasters and severe weather events in Florida has made it unprofitable for insurance carriers, leading to increased premiums and non-renewals. The litigious environment in Florida, with the state accounting for 79% of insurance lawsuits filed, has also contributed to the issue.
While Nationwide's decision not to renew policies in Florida may be disappointing to some customers, there are still plenty of reputable options for homeowners insurance in the state. However, it is important for homeowners to prioritize good coverage over price to ensure adequate protection in the event of a natural disaster or severe weather event. Florida's insurance regulator has also approved six new companies to begin writing property insurance policies in the state starting in 2024, providing more options for homeowners.
In summary, natural disasters and severe weather are the primary causes of non-renewals for Nationwide's homeowners' insurance policies in Florida. The high frequency and severity of these events have made it financially challenging for insurance companies to continue operating in the state. As a result, homeowners in Florida are facing difficulties in finding affordable and comprehensive insurance coverage. However, there are still alternatives available, and the recent approval of new companies entering the market may bring some relief to the insurance crisis in Florida.
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$174.33 $195
Florida accounts for 79% of insurance lawsuits filed
Nationwide Insurance has joined a list of companies that are ending some homeowner insurance policies in Florida. This is due to the unprofitability of the market, with Nationwide citing inflation and market disruptions as reasons for their decision. Florida's litigious environment is a significant factor in this unprofitability, with the state accounting for 79% of insurance lawsuits filed in the US, according to the Insurance Information Institute and the Florida governor's Office. This high rate of litigation has resulted in increased costs for insurance companies, with $51 billion paid out by Florida insurers over a 10-year period, 71% of which went to attorneys' fees and public adjusters.
The high number of insurance lawsuits in Florida is due in part to fraud and taking advantage of loose regulation and court decisions. For example, the "assignment of benefits" problem involves contractors knocking on doors after a storm and offering to get the homeowner a new roof, which is often unnecessary. Hurricanes and severe weather events have also contributed to the increase in insurance lawsuits, with water damage from hurricanes covered by the National Flood Insurance Program rather than private property insurance.
In response to the high rate of litigation, Florida Governor Ron DeSantis signed a property insurance reform bill in 2022 to stabilize the market, increase competition, strengthen consumer protections, reduce litigation, and prohibit the use of assignment of benefits for policies issued after January 1, 2023. This bill has shown some success, with a 23.8% decline in the number of lawsuits filed against insurers during the first three quarters of 2023 compared to the same period in 2022.
The insurance crisis in Florida has made it challenging for homeowners to find affordable property insurance, with many companies reluctant to write new policies in the state. Citizens Property Insurance Corp., the state-backed property insurer of last resort, has seen its policy count nearly double since October 2019, indicating the difficulty Floridians face in obtaining private-sector insurance. The high cost of insurance in Florida is a financial strain on residents, with the annual cost of an average homeowner's insurance policy nearly triple the US average in 2022.
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There are still plenty of reputable home insurance carriers in Florida
While Nationwide has joined a list of companies that are ending some homeowner insurance policies in Florida, there are still plenty of reputable home insurance carriers in the state.
Florida's unique risks, such as hurricanes, high litigation rates, reinsurance costs, flooding, and tropical storms, have made it challenging for homeowners to find affordable property insurance. However, there are still multiple reputable insurers that can offer comprehensive coverage.
For example, Florida Peninsula Insurance has been praised by customers for its positive and satisfactory claims process, with the company providing helpful and empathetic assistance. Augustyniak Insurance Group in Jacksonville, Florida, is another trusted independent insurance agency, earning a 4.9-star rating from 1,961 Google reviews as of May 25, 2025. AAA is also mentioned as a reputable insurance carrier, offering dependable homeowners insurance with in-house adjusters and strong claims support.
Additionally, the Florida Insurance Regulator approved six new companies to begin writing property insurance policies in Florida starting in 2024, indicating that more options are becoming available.
When evaluating Florida homeowners insurance companies, it is recommended to consider their financial stability, claims experience, and underwriting rules. By focusing on these aspects, Floridians can find reputable insurance carriers that meet their needs and provide comprehensive coverage for their homes.
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Frequently asked questions
No, Nationwide does not currently offer home insurance in Florida. The company has recently decided to not renew some of its Florida policies.
The company has experienced increased pressure to rebalance its portfolios to ensure it has money in reserves to pay claims due to the frequency and severity of climate and weather-related losses in Florida.
Some of the biggest homeowners insurance providers in Florida include Universal Property, State Farm, Florida Peninsula, Tower Hill, USAA, and Citizens Property Insurance.
Homeowners insurance policies in Florida typically cover damage from wind but not flooding. It is important to carefully review the coverage offered by the policy and ensure that it meets your needs.
