Three more homeowners’ insurance companies with Florida connections are reportedly facing millions of dollars in net losses after Hurricane Ian plowed into the west coast of Florida in late September.
With Hurricane Nicole sideswiping the east coast of the state six weeks later, causing extensive damage to several coastal communities, some insurance companies are teetering on the edge of financial instability.
Six insurance companies have either withdrawn or stopped writing future policies for Florida property owners this year.
Now comes a report from Insurance Business America magazine, which explains how three companies could meet the same fate, just after Hurricane Ian:
What does this mean for Florida’s homeowners insurance market?
Carriers are hurting, inflation is pushing claims costs upwards, reinsurers are projecting large increases for Florida carriers, so, to the consumer, this means fewer options at renewal as capacity is dramatically limited, and premiums — that had already gone up before Hurricane Ian and Nicole — will continue to increase. Outside of Ian and Nicole, the biggest loss driver to Florida homeowners is water damage, and not just from hurricanes, but from leaky pipes. These are the types of losses that happen year-round, and inflation has dramatically increased the cost of repairs for these claims.
The Florida Legislature will call a special session in December to try and protect insurance companies from insolvency and Florida’s policyholders from paying increasing rates. A lot of the insurance companies have their renewals on Jan. 1, so the Florida Legislature’s decisions, if any, in December, could be critical for some.
DID YOUR PROPERTY SUSTAIN DAMAGE DURING IAN OR NICOLE
The Property Damage Attorneys at The Consumer Law Office (CLO) can process your damage claim, so YOU get the full benefits YOU are entitled to under your insurance policy.
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