Important Notice Regarding Florida’s Homeowners Insurance Crisis
For two years we have been warning about the oncoming Homeowners Insurance Crisis.
Today the crisis is here and it is getting worse every week.
Four Homeowners Insurance companies have failed in the past few months.
Many more have restricted new business, cancelled existing policies, or announced plans to do so.
Citizens, our state-run market of last resort, is overwhelmed with new applications.
In many situations, Citizens is the only option for Homeowners.
Last week FedNat Insurance Company and two affiliates announced a Consent Order, with the Office of Insurance Regulation, whereby 70,000 FedNat policies will be cancelled, and 50,000 additional policies transferred to Monarch Insurance Company, a FedNat affiliate. FedNat is a major underwriter in the South Florida Insurance market. The loss of FedNat makes a bad situation far worse.
The State Legislature has been called to emergency session to address the insurance crisis. A shame they did not take this action two years ago.
Please urge your representatives to have the guts to take the difficult steps to resolve this crisis.
Until Florida’s insurance laws eliminate rampant claim fraud and abuse, investment capital will not fund insurance companies to write polices in the state. The legislature must level the insurance playing field or Florida will not have a viable insurance environment. This will devastate the real estate and business sections of our economy.
Please be patient with us for the next several weeks.
Our immediate priority is obtaining new insurance for our FedNat clients who are being cancelled.
With 70,000 policies looking for a new home, this will be a time-consuming process.
In the immediate future, you can expect more premium increases and difficulty in finding insurance coverage.
We are committed to keeping you informed and serving your best interests.