Another Florida insurer exposed to home insurance amid 'volatile' market

Another Florida insurer exposed to home insurance amid ‘volatile’ market

Just a day after the Florida rating agency pulled the financial stability ratings of two property insurers, one of them reported it would fail. The collapse of the property insurance market that Florida homeowners must contend with, according to Mark Friedlander of the Insurance Information Institute. “It makes the market more volatile, and it will continue to be a driver of higher premiums. Currently, Florida residents pay $4,231. On average, for home insurance. That’s nearly three times the US average in average increases,” Friedlander said. Just this week, Florida’s rating agency, Demotek, withdrew the financial stability ratings of four companies and downgraded three companies. And the accident insurance, has been insolvent and taken into receivership by the Florida Bureau of Insurance Regulatory, which means that the company does not have enough money to cover its existing policies. “What this means historically is that it’s the fifth Florida home insurer to go bankrupt this year. This is the biggest failure of Florida home insurers since 1992, when seven Florida businesses failed in the wake of Hurricane Andrew,” Friedlander said. Friedlander said there will be about 20,000 policyholders affected who will get 30 days’ notice to move their policies elsewhere before it is canceled. “The first step is to contact your insurance agent. Find out the current status of your policy. And in a case of insolvency like Weston, what is the date of cancellation? Ask your agent to shop around for your coverage, and try to get multiple quotes.” The property insurance market in Friedlander said Florida is going through a rough patch. “The last thing we want to see is that a homeowner loses coverage during hurricane season.” The bottom line, Friedlander said, is that you want to have continuous coverage. Keep in mind when choosing a new policy that US inflation has made building materials And labor is more expensive RELATED: Another home insurer will stop insuring Florida homes amid market ‘collapse’ RELATED TOPICS: The growing number of homeless families living in Central Florida suburbs

Just a day after a Florida rating agency that obtained financial stability ratings from two property insurers, one of them reported that it would lose.

Weston Property & Casualty was found insolvent days after it withdrew its financial stability rating.

It only adds to the messy and crashing property insurance market that homeowners across Florida have to contend with, according to Mark Friedlander of the Insurance Information Institute.

“It makes the market more volatile, and it will continue to be a driver of higher premiums. Currently, Florida residents pay an average of $4,231 for home insurance. That’s nearly three times the average US rate of increases,” Friedlander said. .

Just this week, Florida’s rating agency, Demotek, withdrew the financial stability ratings of four companies and downgraded three companies.

One of those companies, Weston Property & Casualty Insurance, was found insolvent and taken into receivership by the Florida Bureau of Insurance Regulatory, meaning the company doesn’t have enough money to cover its existing policies.

“What this means historically is that it is the fifth Florida home insurer to file for bankruptcy this year,” Friedlander said. “This is the biggest failure of Florida home insurers since 1992, when seven Florida businesses failed in the aftermath of Hurricane Andrew.”

Friedlander said there will be about 20,000 policyholders affected and they will get 30 days’ notice to move their policies elsewhere before they are rescinded.

“The first step is to contact your insurance agent. Find out the current status of your insurance policy. And in the event of insolvency, like Weston, what is the date of cancellation? Ask your agent to shop for your insurance coverage, and try to get several quotes,” Friedlander said. .

The state has created a market stabilization arrangement that can help with current claims, but Friedlander said he’s trying to think ahead no matter what situation you’re in.

Because the Florida property insurance market is going through a difficult phase.

“The last thing we want to see is that the homeowner loses their coverage during hurricane season,” Friedlander said.

The bottom line, Friedlander said, is that you want continuous coverage.

He also said that when choosing a new policy, we should take into account that inflation in the US has made building materials and labor more expensive.

Related: Another home insurer will stop insuring Florida homes amid market ‘collapse’

Related: Florida home buyers are likely to be trapped by real estate investors

Related: A growing number of homeless families living in the suburbs of Central Florida

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