No matter the length of residency, anyone living in Florida can attest the impact hurricane season can have on the state and other states in the region. For many homeowners in the state, property insurance policies are specifically purchased to protect their property in the event of a hurricane. Thus, if such a policy was altered or changed, it may be extremely detrimental to the homeowner, as there is a real possibility that their home could be damaged or destroyed in the storm.
Notice of nonrenewal
Over 50,000 Florida homeowners have or are about to obtain difficult news regarding their policies. Based on recent reports, three property insurance companies are dropping more than 50,000 homeowner policies. This is occurring just weeks from hurricane season, and at this point in time, some of these policy holders have yet to be notified.
This instance further illustrates the on-going property insurance problem in the state, and it has resulted in individuals now dealing with the hassle to find new coverage. The canceling or non-renewal of these over 50,000 policies was approved by the Florida’s Insurance Commissioner.
The current issues faced by Florida property owners is due to the increased litigation and higher catastrophe claim losses due to the multiple hurricanes hitting the state over the past several years. For instance, the hurricanes that hit Florida is 2017 and 2018 caused a reported $20 billion in damages. Over 100,000 property claims were filed last year.
The increases litigation has led to insurers insolvency. Nonetheless, it is important to consider the following statistics from 2019. That year, the state of Florida accounted for 8% of all homeowners’ claims opened by insurance companies; however, the state accounted for 76% of all homeowners’ suits opened against insurance companies.
Purchasing property insurance is an important step to take when purchasing or owning a home. It is vital to take steps to protect this high value asset, as it could mean a major loss for the homeowner if his or her home is impacted by a hurricane or any other type of storm. Thus, it is imperative that one fully understands their policy, the terms of the agreement and what could be done to enforce one’s rights when seeking benefits from a current policy.