Florida Insurance Crisis: What is the Latest?

Published on 6/29/2022 by Bar List Publishing

Everyone pays for their insurance almost out of habit. We know that we are required to have it and we pay for it in the hopes that we don’t have to use it. But what if your insurance company fails and there are no options to replace it? What do you do to find insurance?

This is the situation in Florida at this moment and Florida residents are struggling to find ways to get insurance in increasing numbers. Florida insurance companies are being sued due to their inability to provide homeowners in Florida with insurance. This might not be enough to help homeowners who are heading into hurricane season without insurance and with no options to find replacement insurance for their homes.

If you want to learn some more about the Florida insurance crisis, you need to keep reading.

Lawsuits Have Been Filed

A recent suit was filed in Leon County by the Restoration Association of Florida along with Air Quality Assessors for the reversal of policy changes that were recently enacted.  One of the main issues that have led to the failure of homeowners to have insurance when they need it are changes that were made to policies that violate the Florida Homeowner Claims Bill of Rights. With the current changes in place, homeowners cannot fix their homes under a variety of conditions that used to be honored by these policies.

There are other insurance fraud problems related to the cancellation of policies. FedNat Insurance Company and its sister companies recently canceled more than 68,000 policies right ahead of the Atlantic Hurricane Season. Fed Nat was formerly one of the largest carriers in the state but they have reduced their presence in the state since last year. They have canceled these policies to attempt to stay afloat.

Failed insurers are leaving an increasingly large number of homeowners with no recourse to find affordable insurance that can protect their homes which leads to issues with banks, mortgages, and more. This is not a small issue and it causes a ripple effect that is felt throughout the housing industry as well as the banking industry.


How Many Companies Are in Crisis?

There are so many companies that are in a crisis that the options to replace failed policies are limited. At this time, this is the list of insurers who have been forced into liquidation or receivership in Florida:

  • Global Liberty Insurance Company of NY
  • Western General Insurance Company
  • Gulfstream Property and Casualty Insurance
  • American Capital Assurance Corporation
  • Bedivere Insurance Company
  • Windhaven National Insurance Company
  • Windhaven Insurance Company
  • Florida Specialty Insurance Company
  • Castle Point National Insurance Company

Experts are saying that there need to be changes in the legislation around insurance in the state to turn this around. There are many that feel that the current laws and regulations in the state will force many more insurers out of business over the course of the year. There are many issues that have been cited that have led to problems in the Florida insurance industry like roof replacement schemes, reinsurance costs, and attorney fees.

Experts have also indicated that it takes about 18-24 months to see the benefits of any changes that have been made. This means that changes might not be felt for so long that it will be time to make new changes again by the time they start to work or fail.

Why Is This Happening Now?

Experts have said that they have predicted this crash for years. The regulation of this industry has been lacking for years and this has led to a slow slide into true disaster. While some experts have stated that the insurance industry is too big to fail, it might be too late for even drastic measures to help homeowners in the state of Florida in a timely manner. The necessary work to shore up the insurance offerings in the state were so neglected and for so long that the crash is worse than anyone could have expected.

Reforms Are Key

Governor DeSantis has indicated that there will be significant reforms that are rushed into effect and that every effort is being made to help homeowners to weather the coming storm. With hurricane season right around the corner, there are bound to struggles for many who could lose their homes or be unable to repair them when storms hit. It can be hoped that there will be reforms that can make material differences by next year, but these processes are often quite slow overall.

News outlets have been calling for homeowners to share their stories so that the issues can be publicly discussed and the degree of the dilemma facing homeowners can be brought to national attention. Many people in the US are totally unaware of this problem that is impacting Florida at this time, but the ripple effect of this breakdown in insurance availability in Florida can impact other parts of the US as well.

Get a Lawyer Right Away if You Have Been Impacted by Insurance Fraud

If your insurance company has changed your policy without your knowledge or has canceled your policy after refusing to provide the claims services that you requested, you need to secure a lawyer right away. With all of the upheaval of the condition of Florida insurance regulation and laws at the current moment and the condition of many insurers, there is no other recourse that is better to access for your needs. Working with a skilled lawyer will help you to secure payment for claims that were outstanding when your policy went into receivership, and you will get some assistance in dealing with any fraud that has impacted you related to your insurance policy.

If you have lost your insurance in Florida and you need support to get payment for open claims or other issues, you need to reach out to us today. We can provide you with the help that you deserve to get the compensation that is necessary to repair your home in your time of need.