AAA Insurance set to issue ‘some’ non-renewals for Florida homeowners

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Company cited high costs due to excessive litigation and 2022 hurricane season

AAA Insurance will be issuing non-renewals for a select number of homeowners in Florida, the company told News 6 on Thursday.

In a release, AAA officials said that the company’s Florida-based insurance provider would continue writing new home and auto insurance for members in Florida.

However, due to strains on the insurance market involving factors like inflation, excessive litigation and a “catastrophic” hurricane season, the company will be issuing a “small percentage” of non-renewals.

This comes after Farmers Insurance was revealed earlier this week to be pulling out of Florida’s dwindling insurance market.

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Florida legislators have tackled the issue of insurance company withdrawals from the state during a special session in 2022. A significant change made during the session was aimed at curbing litigation against insurance companies, which has been cited as driving up insurance costs.

AAA said that the measures passed during that session could help, but it’ll take some time.

“We are encouraged by the statutory changes that have recently taken effect and believe they will provide positive results. Those improvements will take some time to fully materialize and until they do, AAA, like all other providers in the state, are forced to make tough decisions to manage risk and catastrophe exposure. This includes issuing some non-renewals. The number of non-renewals accounts for a small percentage of our business,” company officials said in a statement.

No specific figures were provided regarding the number of non-renewals to be issued.

However, AAA said that its insurance agents are willing and able to help those homeowners find alternate coverage.

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