Insurance policies

Florida home insurance policies discontinued

TAMPA, Fla. (WFLA) — With two weeks to go before the Atlantic hurricane season begins, Florida homeowners are scrambling.

FedNat Insurance Company and its sister companies are canceling more than 68,000 policies, 8 On Your Side has learned. The news comes a week before the scheduled start of the special session on the property insurance crisis in Tallahassee.

A few years ago, FedNat Insurance Company was one of the largest carriers in the state. Last year they reported over $103 million in net losses. Last month, they were downgraded by the rating agency Demotech.

FedNat is now shedding 68,200 policies to stay afloat, desperate to reduce their exposure in Florida. Florida Insurance Commissioner David Altmaier signed a consent order Friday allowing FedNat to drop the policies.

Commissioner Altmaier wrote that the early cancellation is an “extraordinary” step reserved for companies in “a dangerous financial situation”.

Cancellation notices will arrive in mailboxes soon. Policyholders will only have 45 days to find new coverage. The time will be up on June 29 – in the midst of hurricane season.

“Failing, I think, is just not an option,” Gov. Ron DeSantis said Monday, laying out the problem with Florida’s lawsuit. “We have 8% of real estate claims nationwide and 78% of disputes nationwide.”

According to data released by the Office of Insurance Regulation, three out of four property insurance lawsuits nationwide in 2019 occurred in Florida. The state did not have a major hurricane that year.

“We did a package last year that had some good things in it, but it just didn’t do enough, I think, to really stabilize this situation,” Governor DeSantis said. “It’s a market that has been a problem in this state for a long time.”

At present, the legislation is being finalized for the special session. Sources tell 8 On Your Side that bills outlining the changes could be tabled by Wednesday.

“The good news is, on property insurance, I think we’re going to get some really, really big reforms,” ​​Governor DeSantis said.

The situation is dire, with fewer businesses in Florida, more policy restrictions on the age of your roof, and rates at an all-time high. Many policyholders may end up with Citizens, the state-backed company, or without any coverage.

If you have lost your coverage and would like to share your story, email Investigator Mahsa Saeidi at [email protected]