Florida insurance companies leave state and file for bankruptcy

When Mike McKee’s insurance company canceled his policy in 2021, he paid thousands of dollars to install a metal roof on his home near downtown. “First, it would last longer. Two, it will last longer. Three is gonna last longer,” McKee said. However, he didn’t end up saving as much money as he first thought. “The insurance companies I had were always going to charge three times what I paid. two years ago, so about $3,000 a month,” McKee said. He ended up getting coverage from citizens, usually the last resort when homeowners can’t find insurance in the private market. insurers are operating in Florida compared to just a few years ago – for various reasons, such as reinsurance or roof replacement costs – but all policyholders in the state are now preparing to pay more to cover insurers which were forced into liquidation. The frustrating home insurance situation is a barrier to purchase for many WESH 2 survey: Central Florida residents are stunned by soaring home insurance premiums. The Florida Insurance Guarantee Association is a nonprofit entity that administers ms payment for liquidated or insolvent home insurance companies. The association has an assessment for other insurance companies operating in the state of Florida, who would then pass that cost on to their policyholders across the state. “Each homeowner in the state is going to pay defaulting insurers with a special assessment that will be added to their next home insurance renewal bill,” said Mark Friedlander, director of the Insurance Information Institute. State regulators come to approve the last appraisal in March people who lose insurance and i know there has to be a solution but it seems that at every step what happens is that the individual owners are being punished for the ills of the insurance companies and the lack of action by the state legislature,” McKee said. Barry Grimm is a homeowner in Apopka who is also frustrated with the extra expenses after suffering hikes in previous premium rates with his insurance company last year.” Of course, we don’t like to pay more money. I think it comes down to better management and better control of the frivolous claims that are made,” Grimm said. So far this year, Lighthouse Property Insurance Corporation, Avatar Property Insurance and St. John’s Insurance Company have gone into liquidation, according to FIGA. reports. The liquidation of these companies forced their policyholders to find new insurance coverage in the already complicated Florida market. in receivership in Florida:Global Liberty Insurance Company of NYWestern General Insurance CompanyGulfstream Property and Casualty InsuranceAmerican Capital Assurance CorporationBedivere Insurance CompanyWindhaven National Insurance CompanyWindhaven Insurance CompanyFlorida Specialty Insurance CompanyCastle Point National Insurance CompanyOhio-based Demotech monitors the financial health of companies insurance in Florida for decades. Chairman Joe Petrelli told WESH 2 Investigates that it is possible other companies will go into liquidation. “I think there’s some concern if there isn’t meaningful, significant legislative reform,” Petrelli said. to address some of the issues plaguing the Florida home insurance industry. Industry analysts previously cited concerns such as roof replacement programs, attorney fees and reinsurance. start seeing significant impacts,” Friedlander said. Until then, you can check the financial stability of your insurance company by asking your agent, and also ask them to research the best coverage for your home. If you have a tip, you like our investigation team to review emails [email protected] Related: Florida Home Insurance Company Goes Bankrupt, Leaving Policyholders to Scramble Related: $600 Fund million dollars available to help Florida residents struggling to save their homes

When Mike McKee’s insurance company canceled his policy in 2021, he paid thousands of dollars to install a metal roof on his home near downtown.

“One, it would last longer. Two, it will last longer. Three is gonna last longer,” McKee said.

However, he didn’t end up saving as much money as he first thought.

“The insurance companies that I had were always going to charge three times what I paid two years ago, or about $3,000 a month,” McKee said.

He ended up getting coverage from citizens, usually the last resort when homeowners can’t find insurance in the private market.

Not only are home insurance options limited or expensive because fewer insurers are operating in Florida compared to a few years ago – for various reasons, such as reinsurance or roof replacement costs – but all policyholders in the State is now preparing to pay more to cover insurers forced into liquidation.

Related: Florida’s Frustrating Home Insurance Situation Is a Barrier to Buying for Many

WESH 2 studies: Central Florida residents stunned by soaring home insurance premiums

The Florida Insurance Guarantee Association is a nonprofit entity that administers the payment of claims from liquidated or insolvent property insurance companies.

The association has an assessment for other insurance companies operating in the state of Florida, who would then pass that cost on to their policyholders statewide.

“Every homeowner in the state is going to pay defaulting insurers with a special assessment that will be added to their next home insurance renewal bill,” said Mark Friedlander, director of the Insurance Information Institute.

State regulators just approved the latest assessment in March.

“I feel deeply for the people who lose insurance, and I know there has to be a solution, but it seems that at every step what happens is that individual owners are being punished for the ills of insurance companies and lack of action by the state legislature,” McKee said.

Barry Grimm is a homeowner at Apopka who is also frustrated with the extra expense after suffering earlier premium rate hikes with his insurance company last year.

“Of course, we don’t like paying more money. I think it comes down to better management and better control of frivolous claims that are made,” Grimm said.

So far this year, Lighthouse Property Insurance Corporation, Avatar Property Insurance and St. John’s Insurance Company have gone into liquidation, according to FIGA reports.

The liquidation of these companies forced their policyholders to find new insurance coverage in the already complicated Florida market.

Since 2017, WESH 2 Investigates has discovered that the following nine insurance companies have gone into liquidation or receivership in Florida:

  • Global Liberty Insurance Company of New York
  • Western General Insurance Company
  • Gulfstream property and casualty insurance
  • American Capital Assurance Corporation
  • Bedivere Insurance Company
  • Windhaven National Insurance Company
  • Windhaven Insurance Company
  • Florida Specialty Insurance Company
  • Castle Point National Insurance Company

Ohio-based Demotech has been monitoring the financial health of insurance companies in Florida for decades. Chairman Joe Petrelli told WESH 2 Investigates that it’s possible other companies could go into liquidation.

“I think there’s some concern if there isn’t meaningful, significant legislative reform,” Petrelli said.

State lawmakers will gather in Tallahassee on May 23 for a special session to address some of the issues plaguing Florida’s home insurance industry. Industry analysts previously cited concerns such as roof replacement programs, attorney fees and reinsurance.

Even when lawmakers reach a deal, industry analysts say it could be a while before Florida homeowners see relief.

“It’s usually an 18-24 month cycle before we start to see significant impacts,” Friedlander said.

Until then, you can check the financial stability of your insurance company by asking your agent, and also ask them to shop around for the best coverage for your home.

If you have a tip, you’d like our investigations team to take a look at the [email protected] email.

Related: Florida property insurance company goes bankrupt, leaving policyholders to scramble

Related: $600 million fund available to help Florida residents struggling to save their homes

Kristan F. Talley