Florida Homeowners Insurance Crisis Worsens

For two years we have written about the worsening Homeowner Insurance Crisis in Florida.

 

We advised that premiums would increase – they have exploded.

We warned that underwriting standards would tighten – they are now onerous.

We predicted insurance companies would fail – two domestic carriers were placed in receivership in the past ten days.

We shouted that a crisis was coming – it is here. Policies are being cancelled and nonrenewed by the tens of thousands.

 

Homeowners Insurance companies lost $1.6 billion dollars in Florida last year.

They did this without a hurricane. Claim fraud and abuse were the primary culprits.

Look at the stock values of the publicly traded home insurance companies. They are all at or near 52-week lows. Wall Street knows that insuring Florida is a bad business.

In the past several months the following companies have stopped writing new Florida policies.

  • Gulfstream
  • UPC
  • Homeowners Choice
  • Florida Family
  • Avatar
  • Johns
  • ICAT
  • Heritage
  • American Integrity
  • TypTap
  • Lighthouse Insurance
  • Florida Farm Bureau

AIG, PURE, Vault, Universal, Olympus, National Fire & Marine, Tower Hill, Florida Peninsula, Edison, People’s Trust, Lloyd’s, and Frontline have all imposed stricter underwriting or restricted new business.

 

St. Johns and Avatar have just been placed in receivership by the state.

Other carriers failed in 2021. Additional carriers will follow.

 

A few new insuretech companies have been created to fill the void.

Caveat Emptor, doing business over the internet should raise questions and concerns. Technology and direct marketing are not the solutions to the Florida insurance crises.

 

The increase in premiums is difficult for many homeowners. We understand and feel your pain.

This is not the time to seek cheap insurance alternatives.

Now more than ever insuring with a well-managed and solvent insurance company is essential.

We are working overtime to serve our clients, partners, and referrals in this difficult time.

Florida Legislators need to seriously address this crisis and make the tough changes to create a competitive and affordable insurance market.

 

Burke, Bogart and Brownell founder, Lee Burke, was recently interviewed by WPTV tp discuss the Florida homeowners insurance crisis. Read the article here: https://www.wptv.com/money/real-estate-news/homeowners-insurance-killing-the-american-dream.

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