dcsimg

Florida Homeowners Insurance

By Compuquotes Team on March 27th, 2008
Homeowners Insurance

Coastal Home Owners in Trouble
Home Insurers Go Against State Legislators?

186,000 Insurance Policies Dropped In Florida

Despite state rules that forbid insurance companies from dropping customers with open hurricane claims, 186,000 policy holders in Florida (many of whom are still awaiting repairs from 2005) will receive notice that their policies will not be renewable for this hurricane season. Atlantic Preferred Insurance Co. and Southern Family Insurance Co. (both subsidiaries of Poe Financial Group) plan to shed the "financial burden" that cost them an estimated $2 billion in 2004 and 2005.

This leaves thousands of Florida home owners practically uninsurable. Private insurers will generally not sign policies with homeowners who haven't resolved damage from past natural disasters. Most of them will be forced to sign with state backed Citizens Property Insurance Corp., although Poe would still be liable for existing damage.

Citizens is often thought of as the "last resort" insurance company and already has a $1.7 billion deficit for 2005. Their list of policy holders in high-risk areas increases every year, and the oncoming hurricane season is expected to cause more problems for them.

Florida's insurance problem continues to grow as the Florida Hurricane Catastrophe Fund, which pays over $4.5 billion in hurricane losses, is facing a projected deficit of $1.35 billion in 2006.

As the hurricane season draws near, many homeowners describe Florida's insurance problem as "a state of crisis." Companies are still scrambling to recover the $20 billion in damage caused by four storms in 2004, and $10 billion from more storms (including Hurricane Wilma) in 2005.

State officials continue to argue over the answers to the problem. Some want to raise tax money for the CAT fund, while others argue for a state insurance policy that will cover all windstorm damage,removing the burden from private insurance companies. But for 2006, the only answer available to many homeowners is scurrying for any private insurance provider who will accept them or signing with Citizens,the "last resort" company.

Get Free Home Insurance Quotes
Enter Zip code :
Featured Insurance Quote
Twitter
Facebook 470 flares Google+
470 flares ×