As traditional home insurance providers pull back from disaster-prone areas, homeowners are turning to state-sponsored "last resort" insurance plans. These plans, intended as short-term safety nets, are becoming primary solutions.
For instance, Florida's Citizens Property Insurance, a last-resort plan, has become the largest home insurer in the state with 1.4 million policies.
Other states are witnessing similar trends. California and Louisiana have seen the number of policyholders for their respective last-resort plans double in the past five years. The California Fair Access to Insurance Requirements Plan notably added a record 25,000 policyholders in August. This is in stark contrast to the 7,000/month new policies cap recently imposed by Farmers Insurance in the state.