Options continue to dwindle in Florida for those hoping to secure their property through a private equity firm.
Bankers Insurance Groupfrom St. Petersburg, announced on Monday that it is pulling out of the Florida home insurance market because they say that the state laws have not done enough on the home insurance sector to fight fraud and crimes.
The company released a statement:
“This decision was a difficult one, however, necessary to allow us to grow efficiently while maintaining our long-term financial goals.”
It becomes the 16th insurance company in the state to either drop its current assets, declare bankruptcy, or stop writing new policies.
Law enforcement officers who own Banks, like everyone else, will be notified of the layoff within the four-month window required by the government.
Meanwhile, 17 insurance companies – possibly more, depending on some reports – in Florida will find out this week that their ratings have been downgraded by the rating agency. Demotechwhich sent letters to the organizations last week advising them of the change in ratings.
The Florida Office of Insurance Regulation (OIR) confirmed letters from Demotech notifying companies that their ratings had been downgraded from “A” to “S” (Substanial) or “M” (Moderate).
Mortgage lenders Fannie Mae and Freddie Mac require homeowners to have a policy with an A-rated company. These homeowners are forced to obtain new insurance, either at a higher cost, or face the risk of defaulting on their mortgage.
Citizens InsuranceThe “last resort” of the government, seems like the best option for many.
But, only homes costing less than $1 million in Miami-Dade and Monroe counties (and $750,000 elsewhere) can fall under the Citizens system, as can single-unit condominiums with a replacement value of $1 million or less.
Meanwhile, you can check the ratings of the insurance provider right now from Standard and Poor’s Ratings, and click here or call (212) 438-2400.
Tampa-based Southern Fidelity Insurance Co. it was the latest company to lose its financial stability, sending 78,000 Florida owners scrambling to refinance with new, sustainable companies.
All plans were canceled on July 15.
According to Insurance.com, the average cost of homeownership in Florida is $3,643 with a $1,000 deductible for a home valued at $300,000. Miami-Dade County homeowners pay about $7,000 a year, according to Insurify, an insurance marketplace.
Southern Fidelity became the fourth Florida insurer to declare bankruptcy since late February, following Lighthouse Property Insurance Corp., Avatar Property & Casualty Insurance Co. and St. Johns Insurance Co.
FedNat dropped 68,000 points, about half of their customers, and Lexington Insurance pulled out of the state.
Several others have stopped registering new business in parts or all of Florida, including Florida Farm Bureau, TypTap, United, People’s Trust, Universal, Heritage, Progressive, Safeport and Wilshire, according to a report by ABC Action News.
Earlier this spring, state lawmakers held a special meeting to try to end what has become a nightmare for many homeowners, especially those who live along Florida’s coast.
Investment management firm Demotech announced in June that it had withdrawn financial stability from Southern Fidelity, and the company was unable to purchase reinsurance, a key backup for underwriters.
Earlier this year, representatives of First Floridian Auto and Home insurers were calling for a 22.9% rate hike for Legacy policyholders, citing, “questionable” coverage claims, replacement requests, inflation and the cost of new products. – everything adds up. insurance issues for many companies around the world.
Gov. Ron DeSantis, in May, signed new laws aimed at helping consumers, and hoping to protect insurance companies, which have spent two years losing more than $1 billion each year, and companies that have been declared bankrupt.
The new law creates a $2 billion fund to allow insurers to buy insurance to protect themselves against risk. Insurers are required to lower rates for policyholders in order to meet the state insurance fund.
That plan also provides up to $10,000 for hurricane-proof clothing, if the homes meet certain requirements.
The new law also prohibits insurers from automatically denying coverage if the roof is less than 15 years old. Homeowners with roofs that are 15 years old or older are allowed to be inspected before insurers deny them.
If the inspection shows that the roof has at least five years left, insurers may not refuse to issue a policy based on the age of the roof. If the roof is damaged by more than 25% but already complies with the 2007 state law, it must be repaired instead of replaced with an exemption from the building regulations established by this law.