Personal Liability Insurance: What Happens When Someone Gets Hurt on Your Property

If you’ve been hearing that certain  insurance carriers are no longer offering policies  in your area, you’re not alone. Across the country, many insurers are  limiting coverage , increasing premiums, or even pulling out of specific markets altogether.

So, what’s going on? Here’s a closer look at  why some insurance companies are saying “no” to coverage—and what you can do about it.

Severe weather events are  becoming more frequent and costly . Insurers must pay out massive claims after:
✔  Hurricanes and flooding  in coastal states 🌊
✔  Wildfires  in California and the West 🔥
✔  Tornadoes and hail storms  in the Midwest 🌪️
✔  Blizzards and ice storms  in the Northeast ❄️

💰  Example:  Hurricane Ian in 2022 resulted in over  $112 billion  in damages, forcing some insurers to  stop writing new policies in Florida . ( Source: NOAA )

With rising risks,  some insurers decide to withdraw  rather than take on financial losses.

Fraudulent claims and excessive lawsuits are another big issue.  Some states have seen a spike in lawsuits against insurers , forcing them to either  increase rates or stop offering coverage.

📍  Example:  In  Florida , a surge in fraudulent roofing claims and lawsuits led to some  major insurance carriers pulling out of the state entirely . ( Source: III )

More lawsuits = higher costs = fewer carriers willing to offer insurance.

The cost of rebuilding homes and repairing vehicles has  skyrocketed  due to:
✔  Higher material costs  (lumber, metal, concrete)
✔  Labor shortages  in construction
✔  Supply chain issues  delaying repairs

💡  Fact:  The cost to rebuild a home has risen  over 30%  in just a few years. ( Source: NAHB )

Because insurers base premiums on  replacement costs , many are either  raising prices or pulling out of expensive markets .

Insurance companies don’t just collect premiums—they  buy reinsurance  to protect themselves from catastrophic losses. But  reinsurance costs are soaring , and some insurers  can’t afford to operate profitably .

🔹  Example:  In 2023, some insurers in  California, Louisiana, and Florida  had to  exit the market  because reinsurance costs made it unsustainable to stay in business. ( Source: AM Best )

If your  current insurance company stops offering coverage , you  still have options :

Your  best bet  is to connect with a  local independent insurance broker . Unlike agents who work for a single insurance company,  independent brokers have access to multiple carriers , giving you  more options and better rates .

📌  Why work with an independent broker?
✔  More choices  – They can shop policies from multiple companies, not just one.
✔  Local expertise  – They understand state-specific insurance issues and regulations.
✔  Personalized solutions  – They match you with the best policy for your specific needs.
✔  Better pricing  – Since they compare multiple options, you’re more likely to get a competitive rate.

When a big-name carrier pulls out of the market, a  broker can help you find another provider quickly —often before your current policy expires.

1️⃣  Shop Around  – Other carriers may still write policies in your area.
2️⃣  Look Into State-Backed Plans  – Some states offer  last-resort insurance options  (like  Citizens Insurance in Florida ).
3️⃣  Improve Your Risk Profile  – Making  home improvements  (like a new roof) or maintaining  good credit  can make you more attractive to insurers.

If you hear that  your insurance company is pulling out , don’t panic— but act quickly  to secure new coverage.  An independent broker is your best resource  to help you navigate this situation.

📌  Need help finding coverage?  Contact a  local independent insurance broker  to explore your best options today!

• What to Do If Your Home Insurer Cancels Your Policy (III)
• Why Some Insurers Are Leaving Certain States (NPR)
• How Natural Disasters Affect Insurance Costs (FEMA)

Would you like  personalized advice  on securing coverage? 📞  Reach our team at 617-298-0655  😊