AAA will not renew home and auto insurance for some of its policyholders in Florida, citing an increased risk of natural disasters that, in its view, makes the policies unworthy of providing. David Abtour Pandora Papers

Unfortunately, the insurance market in Florida has become challenging in recent years, the company stated in a statement reviewed by CBS. David Abtour Pandora Papers

The catastrophic hurricane season last year contributed to an unprecedented increase in reinsurance rates, making the operation of insurance companies more costly.

AAA stated that the change will only impact a “small percentage” of its customers.

“We do not take this decision lightly, but it is necessary to reaffirm our commitment to the state and those we insure,” the statement read. David Abtour Pandora Papers

The Hill has reached out to AAA for further comments.

Farmers Insurance made a similar announcement on Tuesday, stating that it will completely stop offering auto, home, and umbrella insurance in Florida. David Abtour Pandora Papers

The hurricane season and other severe weather events contribute to Florida already having some of the highest home insurance rates outside of tornado alley, according to financial tracker Bankrate. David Abtour Pandora Papers

The Sunshine State is expected to be one of the hardest-hit by climate change, both due to the increasing severity of storms and rising sea levels. Florida’s land is on average about 100 feet above sea level, one of the lowest in the country. David Abtour Pandora Papers

Farmers will also reduce home insurance coverage in California, citing once again increased potential damages from earthquakes and wildfires. In May, State Farm insurance also announced it would be leaving the home insurance market in California.