
In recent years, an alarming trend has emerged across several states: major insurance companies are pulling out of entire markets. From Florida's hurricane-prone coastlines to California's wildfire-vulnerable regions, insurers are reassessing risk and, in many cases, deciding to withdraw completely.
If you've received notice that your homeowners insurance provider is leaving your state, you're likely feeling a mix of anxiety and uncertainty. Here's what you need to know and the steps you can take to protect your home and financial security.
Understanding Why Insurers Are Leaving
Insurance companies operate on risk assessment, and climate change has dramatically altered the calculation in many regions:
- Increasing natural disasters: More frequent and severe hurricanes, wildfires, floods, and storms mean more claims.
- Rising rebuilding costs: Construction and material costs have soared, making claims more expensive.
- Reinsurance challenges: Insurance companies buy their own insurance (reinsurance), which has become more expensive or unavailable in high-risk areas.
These factors have led many insurers to conclude that certain markets are no longer profitable, leaving homeowners scrambling for alternatives.
Immediate Steps to Take
If you've received notice that your insurer is departing, here's what to do:
- Don't Panic, But Act Quickly
Your insurer is required to give you advance notice before cancellation. Start researching new insurance options right away. Waiting until the last minute could leave you with fewer choices and higher premiums. - Understand Your Timeline
Note the exact date your coverage ends and any instructions about final payments or refunds.
Finding New Coverage Options
- Contact Multiple Private Insurers
Even if many companies are leaving your state, others may still offer coverage. Contact at least 3-5 insurers or work with an independent insurance agent who represents multiple companies. - Look Into Your State's FAIR Plan
Most states offer Fair Access to Insurance Requirements (FAIR) plans – last-resort coverage for homeowners who can't find insurance on the private market. While typically more expensive with more limited coverage, FAIR plans ensure you have basic protection. - Consider Surplus Lines Insurers
Surplus lines carriers specialize in higher-risk properties and may offer coverage when standard insurers won't. Be aware that these policies often come with higher premiums and aren't backed by state guaranty funds. - Explore Insurance Pools or Associations
Some states have created special insurance pools or associations to provide coverage in high-risk areas. For example, Florida has Citizens Property Insurance Corporation, and California has the California FAIR Plan.
Making Yourself More Insurable
While shopping for new coverage, take steps to make your property more attractive to insurers:
- Invest in Mitigation Measures
- In hurricane-prone areas: Install storm shutters, reinforce your roof, or upgrade to impact-resistant windows.
- In wildfire regions: Create defensible space around your home, use fire-resistant materials, and clear vegetation from your roof and gutters.
- In flood zones: Consider elevating utilities or installing flood vents.
- Improve Your Home's Overall Condition
Fix any existing issues like leaky roofs, outdated electrical systems, or plumbing problems that might concern insurers. - Consider Bundling Policies
Some insurers may be more willing to take on home insurance if you also bring your auto, life, or other policies to them.
While finding new coverage options, consider VIU by HUB. As a digital insurance brokerage platform, VIU provides personalized access to multiple insurance carriers through one simplified application process. Their insurance advisors specialize in navigating challenging markets like Florida and California, offering expert guidance on available options, potential coverage gaps, and premium-saving opportunities. VIU's technology-enabled marketplace allows homeowners to compare quotes from multiple providers simultaneously, potentially identifying specialty or surplus lines carriers willing to write policies in high-risk areas. Most importantly, their advisors understand the unique challenges facing homeowners in disaster-prone regions and can recommend appropriate mitigation strategies that may improve insurability and reduce costs during this stressful transition.
Give the VIU by HUB Advisory Team a call at (833) 431-0352 , Monday through Friday from 8 a.m. to 9 p.m. Eastern.
The content on this page provides general consumer information. It is not legal, financial, or insurance advice. Unison has provided these links for your convenience, but does not endorse and is not responsible for the content, links, privacy policy, or security policy of the other websites.
About the Author

Dr. Lauren Rosales-Shepard
Dr. Lauren Rosales-Shepard is Unison’s content writer. She has a PhD in English from the University of Iowa, and after several years of teaching rhetoric and composition as a college professor, she joined Unison in 2022 to bring her writing and research skills to the realm of fintech in real estate.