AMIE Insurance Withdraws from Florida Market, Leaving Thousands Uninsured Ahead of Hurricane Season
Florida—St. Petersburg-based American Mobile Insurance Exchange (AMIE), a relative newcomer to Florida's property insurance sector, has announced its decision to cancel coverage for all of its mobile and manufactured homes across the state. This move comes just before the start of the 2024 hurricane season.
AMIE's decision affects more than 1,100 policyholders who were informed in March that their policies would be canceled within 45 days. The company cited growing reinsurance costs as the primary reason for its withdrawal.
Impact on Homeowners The withdrawal of AMIE from the state exacerbates the problems experienced by mobile homeowners in Florida. These homeowners often need help finding coverage than owners of conventional homes, especially if they own an older property.
AMIE's policy cancellations are part of a larger trend of insurance companies pulling out of Florida due to various factors, including the rapid increase in population, soaring litigation costs, and the impact of severe weather damage.
Policyholders who have been dropped by AMIE Insurance should act quickly to secure new coverage. The Florida Office of Insurance Regulation has advised that individuals have 30 days to find new coverage or risk being uninsured during the upcoming hurricane season.Additionally, policyholders should be aware that Citizens' coverage may come with higher premiums and deductibles compared to private insurance policie.
Why AMIE Pulled Out The growing reinsurance costs primarily drove AMIE's decision to withdraw from Florida. The company stated that these costs had become larger than its written premiums on mobile homes in the state. Other factors contributing to this decision include the increased risk of extreme weather events and the impact of soaring litigation costs.
Options for the Uninsured: Citizens, Florida's Insurer of Last Resort For those left uninsured by AMIE's departure, one option is to seek coverage with Citizens Property Insurance Corp., Florida's insurer of last resort. Despite its limited coverage options and high customer complaints, Citizens is a possible option for homeowners needing help finding coverage elsewhere.
To seek coverage with Citizens, policyholders can:
Visit the Citizens website https://www.citizensfla.com/ to apply for coverage online
Contact a licensed insurance agent or broker to assist with the application process
Call Citizens' customer service hotline at (866) 411-2742 for guidance and support
Citizens have faced explosive growth during the past three years as private insurers have dropped customers and moved forward with significant rate increases. Currently, citizens represent around 18 percent of Florida's insurance market.
However, homeowners in some parts of the state have few, if any, other coverage choices than Citizens. Therefore, it's crucial for those affected by AMIE's withdrawal to explore all available options and ensure they have adequate coverage before the hurricane season begins.
Going Foward The exit of AMIE from Florida's insurance market underscores the ongoing crisis in the state's insurance sector. It leaves many homeowners scrambling for coverage options just as the hurricane season is about to start. While Citizens provides a safety net for some, the broader issues plaguing Florida's insurance market remain unresolved and require urgent attention.
AMIE's exit is unlikely to be the last, as other insurers reassess their exposure in Florida. State lawmakers are under increasing pressure to address the crisis, with some calling for a special legislative session to implement reforms.
Proposed solutions include creating a state-backed reinsurance fund, further restricting litigation, and incentivizing private insurers to return to the market. However, with hurricane season looming and no quick fixes in sight, Florida homeowners face an uncertain and potentially costly future when it comes to protecting their most valuable asset.
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