23/02/2024

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TypTap cancels thousands of flood insurance policies in Florida

TypTap cancels thousands of flood insurance policies in Florida

Thousands of flood insurance policies are being canceled in Florida.

TypTap is one of only a few companies that still sell private flood insurance.

NBC2 has learned the company plans to shed nearly 10,000 policies.

Reid McDaniel with McDaniel Insurance Solutions confirmed TypTap is getting out of the flood insurance business.

“Unfortunately though due to the reinsurance and the issues Florida is having it’s a product they can’t offer anymore,” McDaniel explained.

It’s unclear how many policies exist in Southwest Florida; however, various agencies confirmed the company had many active policies in the area.

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“They are letting people know that you will have a waiting period if you NFIP plan. So you need to shop early,” McDaniel urged.

The likely option for most customers will be The National Flood Insurance Program, which residents like Brian Freeman of Cape Coral currently have policies with.

“It started out low at $400. Last year it was $775 and this year jumped to $900,” Freeman explained.

He said the rising insurance costs however, are starting to take their toll on many homeowners.

“Here’s more expenses. What do we cut?  What do we cut out of our budget or what do we stop watching in order to pay for everyday things like insurance,” Freeman stated.

TypTap does however remain a popular home insurer in Southwest Florida. The company is “not” canceling any of its home insurance policies.