Thousands of homeowners in Southwest Florida are losing their home insurance coverage just weeks before hurricane season begins.
This week saw the beginning of the distribution of ASI-Progressive letters. The business announced last year that it intended to eliminate roughly 100,000 policies.
After receiving one of the letters, Bonita Springs resident John Cunniff said he started looking for new coverage right once.
“It simply said they were reducing their hurricane exposure,” Cunniff stated.
According to him, a lot of people are in similar situations and are frequently required to pay more for coverage.
“I think that is really a big problem for a lot of people,” Cunniff stated.
Despite Progressive’s announcement a year ago that they were reducing their presence in Florida due to dangers, the letters are surprising a lot of consumers.
The relocation would affect hundreds of his clients, according to Doug Nellans, an agent with The Insurancenter in Fort Myers.
“Fortunately ASI- Progressive has partnered with another insurance company to effectively rescue a lot of the policyholders and offer them an alternative policy before the expiration date,” Nellans stated.
While many customers worry about sticker shock when switching to a new provider, Nellans said those being picked up by Loggerhead Insurance shouldn’t be concerned about it right now.
Nellans clarified that, “Loggerhead understands this and they have pledged to make every possible attempt to reduce or remove that sticker shock at least for the initial stages of this transition.”
It may not be so simple for many policyholders to choose another firm, though, as Cunniff claimed he had limited options.
“Coverage was very limited,” he stated.
Many people are rushing to make sure they have a company in place before their policy expires, as there are only 34 days left until hurricane season begins.
In May and June, Progressive is anticipated to send out additional notices of non-renewal.
