Nationwide Insurance said this week it will reduce its catastrophe exposure in Florida by dropping more than 40,000 homeowner and commercial property policies.
Nationwide will not renew about 39,000 homeowner policies and 1,600 commercial property policies in Florida starting January 2008, the Columbus, Ohio-based company said in a news release.
The company will begin notifying affected policyholders in September and the change will not affect this hurricane season. Nationwide said it will have more than 176,000 homeowners policies after the cuts.
“It’s a tough choice that we have to make to ensure that Nationwide Insurance of Florida will be there for our customers in the future,” company spokesman Eric Hardgrove said. “We’re managing our catastrophic weather exposure.”
Agents will work with affected customers to help them move to other carriers over the next several months, the company said. Nationwide also plans to withdraw its home fire insurance line.
Nationwide has said it paid more than $1 billion in property damage claims during 2004 and 2005, when eight hurricanes affected the state.
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