Florida Insurance Update
Just this week, 3 more property insurers (St. John’s, Lighthouse/Prepared & Avatar Insurance) notified agents they have stopped writing in Florida. This adds to others who have gave notice as well (United Property & Casualty, TypTap, Florida Farm Bureau, & Progressive). It is expected more carriers will either increase their premiums or will soon stop writing insurance, moving away from the turbulent Florida insurance waters.
The reason this is happening?
Data from Florida’s largest P&C insurers shows the number of new litigated claims increased a whopping 37% from the prior month in an already elevated number of claims being filed. Additionally, December’s data showed claims related to the assignment of benefits (aka AOB = Contractors/Roofers who convince property owners to assign rights of handing their claim over to them) had increased with Florida for P&C insurers as well. Miami-Dade County experienced the largest AOB issue again in January at 23% of all new litigated cases. Broward County had the 2nd highest with Hillsborough County following in 3rd place.
Many have pinned their hopes on more legislation that could help curb claims litigation and false roof-replacement claims, among other changes. The most comprehensive measure, Senate Bill 1728, by Sen. Jim Boyd, passed the Senate Banking and Insurance Committee earlier this month and is on the agenda for this week’s meeting with the Senate Appropriations Committee subcommittee.
A Florida property insurance insider called what we are going through an “insurance market meltdown” and that other carriers will likely follow suit and temporarily stop writing insurance if legislation doesn’t move swiftly enough. Give Florida Best Quote Insurance a call today to see how we can utilize one of our over 40 home carriers to find you the BEST rate possible!