8th home insurance company closes new business in Florida

TAMPA, Fla. (WFLA) – A property insurance company announced Thursday that it will suspend new business in Florida “until further notice” amid the homeowner’s insurance crisis.

According to an article obtained by the 8 On Your Side Investigative Reporter Mahsa Saidi, American Traditions Insurance Company will temporarily suspend new business beginning next week. Relaxation covers homeowner’s insurance, homeowner’s policies and homeowner’s policies.

In a release, the company said the changes are being made “to manage our exposure and stay in line with our expectations.”

Changes made to the business are effective immediately, according to American Traditions. However, the company said it will honor any qualified statements already saved by the end of the business day Aug. 5.

American Traditions is the latest in a series of companies that have halted new business in Florida or gone bankrupt amid a home insurance crisis affecting thousands of homeowners across the state. Those companies, according to July data from the state-backed Citizens Property Insurance Corporation, are:

American Traditions Insurance Company: Limiting new business

American Traditions announced Thursday that it will close a new business in Florida, effective immediately.

International Property and Casualty: Limiting the new business

Universal Property and Casualty has a new business in Florida.

Home of the Future: Decreasing the new business

Progressive Home closed new business in several Florida counties earlier this year.

Monarch: Limiting new business

Monarch, a FedNat company, cut new business in Florida earlier this year. FedNat Insurance Company and its sister companies canceled more than 68,000 policies in May, seeking to reduce exposure in Florida.

Heritage: Limiting new business

Heritage Insurance suspended new business in several Florida counties, including Polk County, in June.

Florida Farm Bureau: Limiting new business

Florida Farm Bureau limited new business in Florida earlier this year.

Centauri: Limiting new business

Centauri Insurance cut new business in Florida earlier this year.

Bankers: Limiting new business

Bankers Insurance Group decided to exit the Florida homeowners insurance market this week, according to NBC affiliate WESH.

“This difficult decision was made so that we can focus on our remaining lines and ensure they remain competitive and profitable,” the group said in a statement to WESH. “As a popular AM carrier, we still have money.”

Gulfstream: Insolvent

According to Citizens, Gulfstream has been bankrupt since Aug. 27, 2021. Citizen data shows that 32,324 points were affected.

Avatar: Penniless

Avatar has been disabled since April 13, 2022, Citizens said. A total of 36,569 policies were affected.

Lighthouse: Insolvent

Citizen data shows that Lighthouse has failed since May 28, 2022 with 27,244 points affected.

FedNat: Insolvent

FedNat was insolvent as of June 29, 2022 when 65,442 points were affected, according to Citizens.

Southern Loyalty: Failure

Southern Fidelity has been in bankruptcy since July 15, 2022 when 78,000 points were affected, according to Citizens data. An investigation into the failed insurance company is now underway.

In addition, more than 20 companies are facing price cuts that threaten homeowners coverage. Florida officials have warned of financial chaos if the downgrade occurs because lenders Fannie Mae and Freddie Mac require homeowners to have policies with an A-rated company.

Gov. Ron DeSantis announced a temporary fix to the voter reduction crisis earlier this week. Despite the fact that the company was brought down, the governor said that the affected homeowners can keep their orders.

“We can use Citizens Property Insurance as a type of recovery of last resort,” DeSantis said, referring to the state regulator created by Citizens Property Insurance, which provides insurance to distressed companies.

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