Florida Home Premiums Surge

AAA, a Florida-based insurer, has decided not to renew package policies that combine home, automobile, and optional umbrella coverage in the state, joining other companies like Farmers Insurance that have also ended homeowner insurance policies in Florida. The insurance crisis is primarily attributed to increased frivolous lawsuits and fraudulent insurance claims triggered by a 2017 Florida Supreme Court ruling favoring plaintiffs. As a result, 80% of property claim lawsuits in the country occurred in Florida, leading to insolvency for several local insurance providers and the withdrawal of three national insurers from the state. Florida's vulnerability to extreme weather events, particularly hurricanes, has further contributed to the crisis. Premiums for Florida homeowners cost $6,000 per year, up 42% from the previous year, compared to the national average of $1,700.