- Progressive Home Insurance told its agents on Friday about changes to its property insurance portfolio in Florida, where it insures over 200,000 residents.
- The company will now only offer insurance for owner-occupied properties and will discontinue coverage for dwelling/fire or DP3 policies.
- Some high-risk property policies will not be renewed, with affected policyholders offered replacement coverage through Loggerhead Insurance.
- Amidst the announcement, Progressive reaffirmed its commitment to the Florida insurance market.
Progressive Home Insurance, which insures more than 200,000 Floridians, issued a statement on Friday announcing changes to rebalance its property insurance portfolio while maintaining its commitment to remain in the state’s insurance market.
According to the statement, which was delivered to agents within the company, Progressive will only provide insurance for owner-occupied properties moving forward and will discontinue coverage for dwelling/fire or DP3 policies.
Moreover, the company is opting not to renew some high-risk property policies. For affected policyholders, Progressive said that Loggerhead Insurance, a Florida homeowners reciprocal headquartered in Tampa, FL, will offer replacement coverage.
“Florida represents ~6.5 percent of all single-family dwellings in the U.S. but more than 17 percent of all homes insured by Progressive Home are located there,” said the insurer. “We need to take steps to find the right balance for our overall property insurance portfolio.”
The changes will go into effect next year and nonrenewal notices for policies will be sent out in the coming months. Agents were informed that affected customers will have until May 2024 to find replacement coverage.
Despite the pullback, Progressive reassured its intention to continue offering insurance coverages in Florida amid a growing number of insurance firms either liquidating or exiting the market.
“Florida is a priority for Progressive Home and we are not leaving the property market. We look forward to realizing the benefits of the recent state market reforms while we continue to insure more than 200,000 Floridians and their homes,” the insurer said in a statement.
Attempts to contact the Office of Insurance Regulation for further information were not immediately responded to.