By Brian Mudd May 21, 2021 Self-Insuring In Florida. If You Can Afford To Do It, It's Likely Worth The Risk Bottom Line: Earlier this week we learned 50,000 Florida homeowners would be dropped by their current home insurance carriers upon policy renewal. The three carriers shedding some of their Florida policies are Gulfstream Property and Casualty, Southern Fidelity and Universal Insurance. The problem for those carriers comes down to carrying too much risk within their portfolio of business. Insurance carriers must be able to prove they can pay out claims and must maintain specific standards to qualify for reinsurance which is required during times of emergencies. As storm related risks have risen higher than ever, with Florida considered the riskiest state for a natural disaster in the country, combined with record high home prices... It’s a recipe for potential problems. The kinds we haven’t seen since the end of the 04-05 hurricane cycle and the subsequent housing boom and bust of the Great Recession. Now thankfully conditions aren’t anywhere near as dire as in those days but still there’s reason for concerns. Fewer carriers mean fewer options which mean higher prices which were already happening. This might be a time for some who’ve paid off their house to consider weighing their options.