Why Are So Many Florida Homeowners Being Dropped From Their Homeowner’s Insurance Policies?
Tens of thousands of Floridians have been dropped from their homeowner’s insurance policies in recent months – a disturbing trend that drew legislative attention in 2021 and continues to vex legislators, insurers, and homeowners alike. Earlier this summer, Federated National Insurance Company and its sister companies canceled more than 68,000 Florida homeowner’s insurance policies. Other insurance companies are taking similar approaches – if not liquidating entirely.
The wave of cancellations surged just as this year’s hurricane season began, leaving thousands of homeowners scrambling, with more questions than answers. In response, the Governor signed into law new property insurance legislation in Florida aiming to address the issues that have led to rising premiums and dropped policies. Whether this initiative will accomplish more than the similar 2021 legislation to curb rate hikes remains to be seen.
Meanwhile, more Florida homeowners have turned to the state-backed Citizens Property Insurance Corporation to meet their insurance needs. Citizens reports adding about 6,000 new policies per week since March 2022. Instead of serving as the “carrier of last resort”, Citizens became the first choice – by default – for many homeowners.
There are numerous factors involved with these changes, but for most insurance companies that are liquidating or scaling back they cite three influences:
- Rising costs to provide homeowner’s insurance in Florida;
- Increased risk due to volatile weather trends;
- Decreased credit ratings based on uncertainty in the market.
One problem unlikely to fade away is that catastrophe risk modelers say climate change fueling intense storms may stress insurance markets for years to come. This can make it more difficult for insurers to provide cost-effective coverage and for homeowners to find affordable coverage.
What Florida homeowners can do for now is continue to seek and secure the most affordable insurance coverage they can in today’s market. Property owners also need to be wary of insurers looking to cut costs by denying claims when disasters do arise. When these things happen, it is important to work with a Florida property damage attorney that has experience dealing with insurance companies and their various tactics. The Daytona legal team at Bundza & Rodriguez, P.A., has extensive experience in all facets of property damage litigation and can help answer any questions you may have.
Our Property Damage Attorneys Are Here to Help In a Confusing and Frustrating Home Insurance Climate
Homeowners across Florida and throughout the Daytona area face a frustrating insurance environment where policies continue to get dropped – seemingly for no reason at all. What property owners can do is keep aware of the changing circumstances and do their best to maintain affordable coverage for their homes. When an insurer denies a claim in whole or in part, homeowners need to be more vigilant than ever to protect their rights under their policies.
The Daytona property damage insurance attorneys at Bundza & Rodriguez, P.A., have worked with many Florida clients on a variety of property damage issues and will not hesitate to take action – including legal action – when needed. We can guide you through this process and answer any questions you may have. If your insurance company is giving you a hard time, don’t hesitate to call our Daytona law offices at 386-252-5170, or schedule a consultation with our Daytona Beach property damage attorneys online.
Source:
wfla.com/8-on-your-side/homeowners-insurance-crisis-desantis-says-significant-reforms-coming-as-company-drops-68k-policies/
