We recently reported people being dropped from their homeowner’s insurance policies ahead of hurricane season, and with yet another blow, we’re seeing people get dropped from flood insurance policies. It all comes down to money for the insurance providers.
Insurance companies are in business to make money, and some have decided they risk losing money if they carry flood insurance on too many Southwest Florida homes.
Instead, thousands of homeowners will pay a heavy price in the region.
Loris Thomas was in for a shock about her policy when she received a letter from Allstate.
“I was really surprised that had gone up that much,” Thomas said.
Thomas’ flood insurance doubled, but she’s thankful she still has it.
“That was scary,” Thomas said. “I was shocked and grateful that we were not canceled.”
Others have not been lucky to keep their insurance. Franklin Young is among them, and his policy will be canceled June 28.
“It’s just typical to me of insurance companies, dropping people as soon as they think they’re gonna have to pay the claim,” Young said.
Across the state, as many as 20,000 flood policies are being dropped by insurance companies.
“I would be panicking,” Thomas said. “I’d be making phone calls, and it’s not right.”
Insurance agent Gina Racioppi told us Hurricane Irma is to blame.
“All of those areas got flooded pretty badly, so what’s happening is … those private flood companies, they know that they don’t want to be there anymore,” Racioppi said.
But some private companies want to do business in Southwest Florida. It might cost a little more to start.
“As long as we don’t keep having these storms like this, it will eventually go back down, Racioppi said. “It’s all a cycle, right?”
Private insurance companies might be cancelling coverage, but flood insurance from FEMA will never go away.
“Well, we live in Florida, so I mean, it would be great if it went down,” Thomas said. “But I’m not hopeful. I mean, we do have storms.”