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  • Another Florida property insurance company goes into receivership, the 16th to go into liquidation; who else is on the list? | Vizcaya key

Another Florida property insurance company goes into receivership, the 16th to go into liquidation; who else is on the list? | Vizcaya key

By on September 30, 2022 0

On Tuesday, perhaps coincidentally, as Hurricane Ian prepared to target the Tampa-to-Fort Myers area, another Florida-based property insurance company will stop underwriting future property insurance policies.

Sunrise-based FedNat Insurance Company became the sixth this year, and 16th overall, to appear on the liquidation-receipt list in which insurers stop writing future policies or simply pull out of the Florida market, leaving thousands of homeowners without home insurance.

FedNat, founded in 1992, was responsible for some 56,000 policies, among the largest home insurers in the state. Reports say 19,740 customers have already been transferred to Citizens Property Insurance Co.

Earlier in the year, the company reportedly had 140,000 policies, before transferring some 83,000 to related company Monarch National Insurance Co, which coincidentally has an outstanding rating from Demotech.

Kevin McCarty, the former commissioner of the state Insurance Regulatory Office, told the Orlando Sentinel that a storm like Ian “would have a major impact on an already destabilized market.”

But, Florida Governor Ron DeSantis reassured homeowners that they will have plenty of insurance company options.

“We have a catastrophic fund that is full, and the $2 billion (that the legislature added to the Hurricane Catastrophic Fund this year) is an extra layer of protection,” he said.

Florida has the highest premiums in the country.

Governor DeSantis said he would help the struggling property insurance industry.

“Of course there’s more I want to do in terms of wind insurance, and that’s something we’re going to get into,” he said. “But, at the end of the day, we have to make sure people are taken care of and so we will, whatever we have to do.”

FedNat had lost its financial rating on August 1 with the rating agency Demotech.

The Florida Department of Financial Services has sought to be the designated receiver of FedNat, which remains liable for claims and other types of obligations prior to June 1, according to court documents.

On September 13, he notified the state’s Office of Insurance Regulation that he did not have enough money for what is known in the insurance industry as bond “runoff,” according to reports. .

It was just the latest move in Florida’s insurance puzzle, further limiting choices for those looking for coverage.

Other insurers declared insolvent since February were Southern Fidelity Insurance Co., Weston Property and Casualty Insurance Co.; Lighthouse Property Insurance Corp. ; Avatar Property & Casualty Insurance Co.; and St. Johns Insurance Co.

As a result, Citizens Property Insurance Corp., the state’s insurer of last resort, had 1.055 million policies on Sept. 16, more than double its total from two years earlier.

To be eligible for Citizens home insurance coverage, you must meet one of the following eligibility requirements:

– You have been denied coverage from at least one standard Florida homeowners insurance company

– You qualified for homeowners insurance with a standard Florida insurer, but it was 20% more expensive than a comparable policy with Citizens.

Here is a list of companies in liquidation, as provided by Florida Chief Financial Officer Jimmy Patronis (click on each for details):

AMERICAN CAPITAL INSURANCE COMPANY

AVATAR PROPERTY AND RISK INSURANCE COMPANY

FEDNAT INSURANCE COMPANY

SPECIALIZED INSURANCE COMPANY IN FLORIDA

WARRANTY INSURANCE COMPANY

GULFSTREAM PROPERTY AND ACCIDENT INSURANCE COMPANY

PLAN OF UNITED PHYSICIANS, INC.

QUALITY HEALTH PLANS, INC

SAWGRASS INSURANCE MUTUAL

SOUTHERN FIDELITY INSURANCE COMPANY

ST. JOHNS ASSURANCE COMPANY, INC.

SUN STATE INSURANCE COMPANY

UNIVERSAL HEALTH INSURANCE COMPANY, INC.

UNIVERSAL HEALTH CARE, INC.

WESTON PROPERTY AND RISK INSURANCE COMPANY

WINDHAVEN INSURANCE COMPANY