Archive for the ‘Florida home insurance cancellations’ Category

Florida Home Insurance Cancellations This Year Could Send You Scrambling for Coverage

February 12, 2010

Florida home insurance cancellations are going to continue in the coming year so be on the lookout.

The largest private home insurance company in Florida is going ahead with an approved program to cancel 125,000 home, condo, and mobile home policies.  While this is good news compared to the estimated 700,000 policies it was originally planning on non-renewing, this is still a significant number of Florida homeowners who are going to be scrambling to find new coverage.

Another large national company announced plans late last year to cancel another 60,000 policies as it continues to cut back its exposure in Florida.  Perhaps these cancellations will be more easily absorbed because the company arranged for a regional Florida home insurance company to pick up those policies.  However, there is no guarantee that the policyholders who lose their coverage will be able to find a replacement.  It will be especially difficult for homeowners in Florida’s southern coastal counties such as Dade, Broward, and Palm Beach to find alternative coverage.  It will also be difficult for those with older Florida homes and those built with wood frame construction to find replacement coverage.

Last but not least, home grown Florida insurance companies continue to evaluate their existing risks and to selectively cancel policies.  A portion of this is due to their reinsurance agreements which limit how much risk they can assume in certain zip codes.  Sometimes they make a business decision to cut back on coverage especially in the South Florida counties on the coast.  Finally, some of the newer Florida take out insurance companies eventually reject policies that they’ve previously taken out of the state run insurance company after discovering risks that they don’t want to be exposed to.  This could be a poorly constructed home or a home that hasn’t been property updated or that has not been maintained in good condition.

If those aren’t enough reasons to be concerned about cancellations during the coming year there is one other development that could lead to more cancellations.  A large number of homeowners insurance companies in Florida plan to implement an ambitious plan to re-inspect homes that they currently insure.  Some of those homes could be in poor condition and may not be adequately protected enough to prevent hurricane damage to the home.  If your home is re-inspected by your present insurance company and they find a significant difference between the condition of your home and what their records show, you could join the ranks of those who have been cancelled in the coming year.

Finally, if your Florida home insurance policy is cancelled during the coming year, it is important to pay attention to the quality of the new companies you are considering.  Three companies failed during the past year and had to be taken over by the State of Florida.  In addition, over half of the remaining companies still open for business lost money in the last twelve months.  If you are cancelled during the coming year, it is not the time to buy your Florida home insurance simply on price.  It is essential that you shop around.  Select the wrong company and you could be waiting a long time to be paid after the next Florida hurricane.

As the year unfolds, pay close attention to the news and to your mail box.  This might be the year that you have to face the prospect of losing your Florida homeowners insurance coverage.

Michael Letcher is an executive in the Fortune 500.  Use his on-line consumer database to find low cost Tampa homeowners insurance.  Get his free newsletter and learn about low cost Tampa home insurance at =>