FORT MYERS
The property insurance crisis in Florida is exacerbated after tens of thousands of homeowners ’policies are canceled.
It comes a week before lawmakers come together again to find a solution.
FedNat Insurance Group lowers rating to survive.
Experts say last year’s ice storm in Texas and Hurricane Ida in Louisiana hit the company hard.
He also struggles with roof replacement schemes and lawsuits, like many other insurers in Florida.
This leaves those who lose coverage in less than two months to find new coverage during hurricane season.
It affects about 68,000 Florida residents.
FedNat and its subsidiaries have canceled nearly half of their policies in Florida, giving homeowners about 45 days to get new coverage.
“The private property insurance market in Florida is in free fall. We have seen this collapse for months. This year, we have already seen three residential insurers in Florida declared insolvent, ”said Mark Friedlander of the Institute of Insurance Information.
Friedlander said most of the victims would find themselves in the state’s civil property insurance company.
He said Citizens is fast becoming the most popular company in Florida, which is not very good.
One strong storm means the state is losing a lot of money by helping people repair damage.
“Not only will a major loss from the storm potentially destroy citizens’ reserves, but it could lead to a surcharge for every homeowner and every car owner in Florida, ”Friedlander said.
State Consumer Rights Attorney Tasha Carter calls property insurance issues like these the main reason for next week’s special legislative session.
“I hope that this upcoming special session, you know, will provide additional opportunities to be able to, you know, at least consider and enact legislation that will specifically address some of the factors that lead to the adverse impact experienced by consumers. in our market, ”said Carter of the Florida Department of Financial Services.
But don’t expect these problems to go away immediately.
It may take a year or more to see any consequences.
“This will be the first step toward restoring Florida’s volatile market, and we will take steps to make the market more stable and viable for homeowners across the state. And for insurers to continue to work effectively in the state, ”Friedlander said.
Friedlander said it’s best for FedNat insurers to do insurance with your agents so you are protected in time for hurricane season.
