AAA will not renew a "very small percentage" of homeowner's insurance policies in Florida
Some higher-risk homes that have coverage with a Florida-based insurance provider will not be able to re-up their same policy for the next year.
AAA will not renew its package policies that combine home, automobile and optional umbrella coverage, a spokesperson said Monday.
The "small number" of affected customers have been notified of the non-renewals and can reapply for automobile coverage from their sister carrier.
The AAA spokesperson did not say specifically how many policyholders the company’s decision impacted, only that a “very small percentage of higher exposure homeowner’s policies” would not be renewed.
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“Evaluating risk and exposure management is common practice in the insurance industry,” the company said in a prepared statement, adding that AAA intended to continue growing its business in Florida. The company is still writing new home and automobile insurance policies.
News of the decision was swept up days after a national home insurance brand announced it was pulling business out of Florida.
Farmers Insurance, based in California, last week announced it would stop writing new business under “Farmers-branded” policies, and existing automobile, home and umbrella policies would not be renewed. The effects of this decision likely won't be felt until later this year.
Policies under the company’s other brands such as Bristol West, Foremost Signature, Farmers GroupSelect, Foremost Choice and Foremost-branded policies would not be affected.
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While agreeing that selective non-renewals are done “quite frequently” by insurers, Insurance Information Institute spokesperson Mark Friedlander said the concern would be the timing, as these non-renewal notices are happening during hurricane season.
Insurance companies are required to give a reason to not renew a person’s policy, whether that’s roof age, discontinuing business in a certain county or a high number of claims.
“Many companies make decisions based on risk and determine that actions are sometimes needed to decrease their risk exposure in Florida,” Friedlander said.
AAA insurance is not leaving Florida. We are actively writing new insurance policies and will continue to grow our policy count year over year. We will work with any policyholder that receives one of our small number of non-renewals that is issued in order to manage our risk.
— AAA Florida (@AAAFlorida) July 15, 2023
Hannah Morse covers consumer issues for The Palm Beach Post. Drop a line at hmorse@pbpost.com, call 561-820-4833 or follow her on Twitter @mannahhorse.
This article originally appeared on Palm Beach Post: AAA will not renew "small number" of insurance policies in Florida
