Floridians Lose Home Insurance
Three insurance companies are dropping more than 50,000 home insurance policies just as the hurricane season approaches.
Gulfstream Property and Casualty, Universal Insurance Company of North of America, Capitol Preferred Insurance Company, Weston Insurance Company, and Southern Fidelity Insurance received approval from the Florida Office of Insurance Regulation to cancel or not renew thousands of policies with 45 days’ notice.
According to the state, the companies chose to take these drastic measures so that they wouldn’t go under financially. It seems that, in the past five years, Florida’s property and casualty market has been in an unenviable position, which is unsurprising considering that natural disasters of various kinds are quite common in this state.
As a result, some insurers have suffered losses in the millions. For instance, Universal Insurance – a company that offers both personal and business insurance and has been doing so for more than 70 years – reported a net loss of $22.5 million in the fourth quarter of 2020.
“The Florida insurance market is one of the most complex in the world, and the property market is currently facing significant challenges as the frequency of claims increases and those claims become more expensive. These challenges are largely due to increased litigation, exacerbated by higher catastrophe claim losses as a result of multiple hurricanes over the past several years, and rising reinsurance costs as a result of a hardening reinsurance market,” a spokesperson from the Florida Office of Insurance Regulation said.
Unfortunately, experts believe that these poor market conditions will soon push more companies to start dropping clients. Their advice on increasing one’s chances of getting new coverage is to, if possible, do some renovations, such as replacing your roof or updating your electrical installations. After all, Floridians living in homes that are more than 40 years old and in poor shape are among those least likely to have their policies renewed.
I have always thought of myself as a writer, but I began my career as a data operator with a large fintech firm. This position proved invaluable for learning how banks and other financial institutions operate. Daily correspondence with banking experts gave me insight into the systems and policies that power the economy. When I got the chance to translate my experience into words, I gladly joined the smart, enthusiastic Fortunly team.
