It's generally rare for home insurance policies to be canceled, except in cases of fraud, too many claims or increased risk. But the risks of insuring Florida homes have been increasing. Four Florida home insurers — Avatar, Lighthouse, Southern Fidelity and St. John's — have become insolvent in 2022, meaning they don't have enough money to cover their debts or pay claims. Together, the companies account for over 250,000 home insurance policies in Florida. In addition, FedNat announced plans to cancel 68,000 policies.
You should be notified in advance to give you time to find a new policy, but it never hurts to be proactive. Call your insurance agent or customer support if you're worried your policy will be canceled.