WEST PALM BEACH, Fla. — Another insurance company is now cutting its losses in Florida, dropping some of its property insurance customers. AAA said some policyholders are about to receive non-renewal notices, but the company did not say how many people will be impacted.
It’s the latest concern for South Florida residents with rising property insurance costs across the state.
“It was a huge jump,” said homeowner Ross Carter when asked about the rise in property insurance. “I mean, it was surprising to me. It was a shock, I really was.”
Although Carter does not have AAA insurance, he said he’s concerned his insurance carrier will follow suit.
“The catastrophic 2022 hurricane season drastically raised operational costs for providers,” AAA said in a statement.
“We do live in a state that has natural disasters and we need to be able to protect ourselves when those things occur,” Carter said. “So that is a concern, and if insurance companies aren’t going to help support us when we’re in need, that’s going to be a problem for everyone.”
For insurance agents, they’ve seen this insurance market change drastically over the past few years.
“Three years ago, you’re looking at maybe a 5-10% kind of annual rate increase and now it’s become like, ‘Man you are so lucky that you got a 35% rate increase because at least you got a renewal offer,” said Jake Holehouse, principal insurance agent at HH Insurance Group.
AAA said it will help customers find alternate coverage.
