While Florida's turbulent property insurance sector appeared to finally be stabilizing, a mobile home insurer's reported decision to cancel its policies across the state might plunge some homeowners back into the crisis.

Florida insurance agents told news media that St. Petersburg-based American Mobile Insurance Exchange (AMIE), a relative newcomer to the Sunshine State's property insurance sector, is canceling coverage for mobile homes and manufactured homes in the state because of growing reinsurance costs.

"Based on the information I got the reinsurance became an issue, the pricing became an issue," Robert Norberg of Arden Insurance in Lantana told WPTV. "Mobile homes have been an issue for many, many years. You're paying a high premium for a small amount of coverage."

Newsweek contacted AMIE for comment by email on Tuesday morning.

Florida Mobile Home Hurricane
A woman walks through Buccaneer Island mobile home park in the aftermath of Hurricane Ian in Matlacha, Florida on October 3, 2022. American Mobile Insurance Exchange has canceled its mobile home policies across the state,...  RICARDO ARDUENGO/AFP via Getty Images

The mobile home insurer informed policyholders and agents in the Sunshine State back in March that it was canceling more than 1,100 policies within 45 days, as reported by the Insurance Journal.

"These cancellations have been issued as part of AMIE's plan to withdraw from the mobile homeowners market in Florida prior to the beginning of the 2024 hurricane season," a bulletin from the insurer cited by the website reads. "This plan to withdraw is due to deterioration of AMIE's financial condition."

Unearned premiums and subscriber surplus contributions would have been returned on June 3, according to the bulletin, to help policyholders pay for new coverage.

The policies have been canceled ahead of a hurricane season which experts expect to be particularly busy and which could have potentially devastating impacts on Florida. According to agents, AMIE's reinsurance costs had got bigger than its written premiums on mobile homes in the state.

According to estimates by LendingTree, the cheapest Florida mobile home insurance company for a policy with wind coverage is American Traditions, at an average annual rate of $1,210. The company has the largest share of mobile home insurance policies in the state.