Due to unstable market conditions and widespread fraud and claims abuse in Florida in the last few years, many carriers have been forced to stop writing new business in several of the state’s territories.
As pricing in Windstorm Reinsurance increased dramatically at the beginning of 2021, many carriers had to limit their exposure and reduce their capacity for new business in order to navigate during these very difficult times.
Now in June, three large insurance companies are following this same route, and will announce short cancellations of thousands of policies and some non-renewals to balance their books of business. This is a financial measure the insurance companies take to secure the premiums they have not yet paid out in order to remain solvent.
These carriers are:
1. Southern Fidelity
2. Gulfstream Insurance
3. Universal North America
If you are a Florida policyholder, this will affect you. It is extremely important that you reach out to your insurance agent to speak about your risk appetite, and exposures and deductibles so that we may make the best contingency plan to migrate your policies to other insurance providers.