MHM.
ANOTHER INSURER HAS DROPPED
64,000 POLICIES SENDING
THE STATE INTO AN EVEN WORSE CONDITION
WITH ONLY A WEEK AND A HALF LEFT
UNTIL THE ATLANTIC HURRICANE SEASON BEGINS.
THE FLORIDA HOME INSURANCE CRISIS HAS ACHIEVED
URGENT STATUS. PROPERTY
OWNERS ACROSS THE STATE HAVE BEEN SCRAMBLING
TO OBTAIN THE COVERAGE THEY REQUIRE
EVEN WORSE IN A MARKET. ALREADY
BLEEDING POLICIES AND INSURERS, FED
NET INSURANCE COMPANY AND ITS SISTER COMPANIES
HAVE DROPPED OVER 68,000 FLORIDA HOME
INSURANCE POLICIES. THIS INSURANCE
NEWS HAS ARRIVED JUST AS THE SPECIAL
LEGISLATIVE SESSION HAS BEEN SCHEDULED TO START
IN TALLAHASSEE TO TAKE ON THE CRISIS IN THE STATE.
FED NOT USED TO BE ONE OF THE LARGEST
PROPERTY INSURERS IN THE STATE. THAT
SAID THEY REPORTED OVER $103
MILLION 2021.
IN APRIL 2022, THE DEMO
TECH RATING AGENCY DOWNGRADED THEM.
NOW, THE INSURER HAS ANNOUNCED
THAT IT IS DUMPING 68,200
POLICIES IN ORDER TO RETURN ITSELF TO
PROFITABILITY. IT IS A LAST DITCH
MOVE TO REDUCE THEIR RISK EXPOSURE
IN THE STATE, STATE INSURANCE COMMISSIONER
DAVID ALTMAIER SIGNED A CONSENT ORDER EARLIER
THIS MONTH TO PERMIT THE INSURER TO DROP THE
POLICIES.
THE FLORIDA HOME INSURANCE POLICY DROP
IS CONSIDERED TO BE AN EXTRAORDINARY STEP, SAID
THE COMMISSIONER.
ALTMAIER RECENTLY WROTE THAT FED NAT'S
EARLY CANCELATION OF THE POLICIES IS AN EXTRAORDINARY
MOVE THAT HAS BEEN KEPT EXCLUSIVELY FOR THE MOST
HAZARDOUS FINANCIAL CONDITION
AFFECTED POLICYHOLDERS
HAVE ALREADY BEEN RECEIVING THEIR NOTICES IN THE MAIL.
THEY WILL HAVE ONLY 45 DAYS IN WHICH TO
SECURE NEW COVERAGE. THEIR EXISTING
COVERAGE THROUGH FED NAT WILL CONCLUDE
ON JUNE 29TH, AT WHICH POINT ATLANTIC
HURRICANE SEASON WILL ALREADY BE WELL UNDERWAY,
FAILING, I THINK IS JUST
NOT AN OPTION, SAID GOVERNOR RON DESANTIS
LAST WEEK, UNDERSCORING THE LAWSUIT PROBLEM.
IN THE STATE, WE HAVE 8% OF
THE PROPERTY CLAIMS NATIONWIDE AND
78% OF THE LITIGATION NATIONWIDE.
OFFICE OF INSURANCE REGULATION
DATA THAT WAS PUBLICLY RELEASED SHOWED THAT THREE
QUARTERS OF PROPERTY COVERAGE LAWSUITS ACROSS
THE ENTIRE UNITED STATES FROM 2019
WERE FROM THE FLORIDA HOME INSURANCE MARKET.
THIS, DESPITE THE FACT THAT A MAJOR HURRICANE
DIDN'T OCCUR THAT YEAR.
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