TAMPA, Fla. — Thousands more Florida homeowners will soon be without property insurance.
Last week, Florida’s Insurance Regulatory Authority decided to introduce United Property & Casualty Insurance Co. It comes after the insurer was declared insolvent following bigger-than-expected losses from Hurricane Yang.
“UPC failed because of the high volume of claims from Hurricane Jan, combined with the fact that they did not have the appropriate level of reinsurance coverage that insurers typically need to ensure that they do not fail after major losses, such as a hurricane,” said Mark Friedlander of the Insurance Information Institute.
However, on Feb. 1, Slide Insurance Co., based in Tampa, accepted more than 72,000 United policies; he is not liable for claims filed before February 1.
Friedlander said the Florida Insurance Guaranty Association will help pay United’s claims. The non-profit organization was set up to handle the claims of insolvent companies and can collect surcharges on top of insurance premiums to cover additional costs.
The decision to place UPC under review is another blow to Florida’s property insurance market.
“Now with UPC, that’s 10 Florida insurance companies that have failed since the beginning of 2021,” Friedlander said.
The state-backed insurer of last resort, Citizens Property Insurance Corp., has provided policies to thousands of homeowners who lost coverage in last year’s bankruptcies.
“The best advice we can give United policyholders right now is to contact their agent. Your agent will be your go-to person during the transition. They will be the best fit, the best able to meet your individual needs,” said Michael Peltier of Citizens Property Insurance Corp.
