Understanding the Current Trends
Homeowners insurance in Florida has been undergoing significant changes in recent years, driven by increasing natural disaster risks and rising insurance premiums. The state’s vulnerability to hurricanes, floods, and other extreme weather events has caused insurers to reevaluate their policies and coverage options. Furthermore, insurance companies are not able to keep up with the Florida requirements in terms of money in their coffers, and as a result, the property insurance industry as a whole, including Citizens Insurance, has requested the State Office of Insurance regulation (OIR) to allow cross the board rate hikes for everyone.
As a result, every Floridian who has a homeowner’s insurance policy has seen their rate go up, and in many cases, have seen their insurance company be declared insolvent and forced into receivership by state regulations.
Interestingly, another key trend impacting homeowners insurance in Florida is the growing influence of reinsurance markets. One would never know this, but insurance companies are required to carry insurance from the “reinsurance market.” Although there seems to be some light at the end of the tunnel in terms of reinsurance rates falling, reinsurers, who provide insurance for insurance companies, have become more conservative due to the heightened risk associated with Florida’s climate. This shift has led to fewer options for coverage which has also created higher costs for homeowners.
List of FL Property Insurance Companies in Receivership
- AMERICAN CAPITAL ASSURANCE CORP
- AVATAR PROPERTY AND CASUALTY INSURANCE COMPANY
- FEDNAT INSURANCE COMPANY
- FLORIDA SPECIALTY INSURANCE COMPANY
- GULFSTREAM PROPERTY AND CASUALTY INSURANCE COMPANY
- SOUTHERN FIDELITY INSURANCE COMPANY
- ST. JOHNS INSURANCE COMPANY, INC.
- UNITED PROPERTY & CASUALTY INSURANCE COMPANY
- WESTON PROPERTY & CASUALTY INSURANCE COMPANY
What Homeowners Need to Know
With these changes in the insurance landscape, it’s crucial for you the homeowner, to be proactive and informed. You must have an understanding of the coverages on your policy, because insurance companies are also removing much needed coverages without your knowledge. You should look at your policy and check for “endorsements.” Endorsements are extra added language in your policy that changes your coverage. It is usually at the very end of the policy, and they hope you don’t read it. Many of the endorsements cut your water damage coverage to low limits. Some endorsements force you to use the insurance company’s workers to do repairs.
Some endorsements eliminate or limit the ability to get coverage for matching items in your house, so if one of your bottom kitchen cabinets are completely ruined by water, they will only covered the one damaged cabinet even if it is impossible to repair or replace it with an exact match. You might not think this is a big deal, but it’s huge. There are water damage victims right now who are learning about these policy limits after it’s too late.
You as a homeowner, should review your coverage limits, endorsements, and exclusions to ensure you are adequately protected and most of all be prepared and not surprised of these tricky Florida Homeowners Insurance Changes
Another consideration for you to do, although likely a waste of time, is to write to your state regulators. I realize you probably won’t do it, but these regulators are heavily influenced by the insurance lobby. Although they feel your pain because they are also Florida residents, they are more influenced by the deep pockets of the insurance lobby than they are by you, the homeowner. If enough people said enough is enough, regulators may listen and cause positive change for Floridians insurance costs and options.
Finally, you can shop around different insurance brokers to find more competitive rates and better coverage. Consulting with an insurance broker who understands the nuances of Florida’s market can also provide valuable insights and aid in navigating the complex landscape.
Can a public adjuster help you TODAY?
YES. A public adjuster can help you. Florida Allstar Public Adjusting, Inc. is fully aware that insurance company insolvencies and tricky policy endosements can be confusing and worrysome and we can advise you on the best way to proceed with your claim, or perhaps not file the claim at all. Here is how we can help:
Florida Allstar Public Adjusting are experts in Navigating Claims. We have knowledge of the complex insurance policies that are out there, and we know how to navigate the claims process. We will make sure your claim is filed correctly and that all necessary documentation is provided, which is crucial when dealing with your insurer, or guaranty association.
We are your advocate for negotiation. We handle the communication with your insurer and company adjusters on your behalf, and negotiate with them to achieve a fair settlement. This is particularly important when insurers are struggling financially and may be less inclined to provide adequate payouts.
Florida Allstar Public Adjusting, Inc, provides a detailed estimate, adjusters’s report, or damage assessment: We conduct thorough damage assessments and prepare detailed reports using the latest technology and estimating guidelines. This helps in making a strong case for the claim and ensures that all damages are accounted for, even if the insurer is experiencing financial difficulties.
Our firm, helps you through the entire claims process, including communication with the insurance company. This can be especially valuable when dealing with an insolvent company that may be less responsive or organized.
We will ensure that all necessary documentation is correctly prepared and submitted. This can be critical in avoiding delays or denials due to incomplete or inaccurate paperwork.
In summary, while the insolvency of insurance companies in Florida presents significant challenges, Florida Allstar Public Adjusting (FAPA) can be instrumental in navigating these difficulties. Our expertise, advocacy, and management skills can make a substantial difference in achieving a favorable outcome for you.
