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While Florida's turbulent property insurance sector appeared to finally be stabilizing, a mobile home insurer's reported decision to cancel its policies across the state might plunge some homeowners back into the crisis.
Florida insurance agents told news media that St. Petersburg-based American Mobile Insurance Exchange (AMIE), a relative newcomer to the Sunshine State's property insurance sector, is canceling coverage for mobile homes and manufactured homes in the state because of growing reinsurance costs.
"Based on the information I got the reinsurance became an issue, the pricing became an issue," Robert Norberg of Arden Insurance in Lantana told WPTV. "Mobile homes have been an issue for many, many years. You're paying a high premium for a small amount of coverage."
Newsweek contacted AMIE for comment by email on Tuesday morning.
The mobile home insurer informed policyholders and agents in the Sunshine State back in March that it was canceling more than 1,100 policies within 45 days, as reported by the Insurance Journal.
"These cancellations have been issued as part of AMIE's plan to withdraw from the mobile homeowners market in Florida prior to the beginning of the 2024 hurricane season," a bulletin from the insurer cited by the website reads. "This plan to withdraw is due to deterioration of AMIE's financial condition."
Unearned premiums and subscriber surplus contributions would have been returned on June 3, according to the bulletin, to help policyholders pay for new coverage.
The policies have been canceled ahead of a hurricane season which experts expect to be particularly busy and which could have potentially devastating impacts on Florida. According to agents, AMIE's reinsurance costs had got bigger than its written premiums on mobile homes in the state.
According to estimates by LendingTree, the cheapest Florida mobile home insurance company for a policy with wind coverage is American Traditions, at an average annual rate of $1,210. The company has the largest share of mobile home insurance policies in the state.
At the national level, Insure.com estimates that the average cost of mobile home insurance is between $700 and $1,500 per year. This type of insurance normally covers the structure, personal property, liability and loss of use during a covered claim.
The reported withdrawal of AMIE from the state is likely to exacerbate the problems already experienced by mobile homeowners in Florida, who often have a harder time to find coverage than owners of manufactured homes, especially if they own an older property.
"One of our niches has been manufactured homes and mobile homes. But now the market has absolutely fallen apart in Florida," John Gardner, principal at Lee County Insurance agency, one of the larger agencies in Fort Myers, told the Insurance Journal.
Many will be forced to seek coverage with Citizens, Florida's insurer of last resort. Just as many others might choose to go without insurance completely, what's known as "going bare." According to the Insurance Information Institute (Triple-I), between 15 and 20 percent of homeowners in the Sunshine State are uninsured—the highest percentage in the nation.
Are you a Florida mobile homeowner struggling to get insurance? Contact g.carbonaro@newsweek.com to tell us about your experience.
About the writer
Giulia Carbonaro is a Newsweek reporter based in London, U.K. Her focus is on the U.S. economy, housing market, property ... Read more