Seven property insurers in Florida went bankrupt in 2021 and 2022. The bankruptcies left thousands of homeowners scrambling to get new coverage, which often came with a big increase in cost. Worse, many had outstanding claims for hurricane damage that had not been addressed. Read the article…………………………….
2 Articles on Florida’s Insurance Problems
Move, cut back or go bare: Florida seniors juggle skyrocketing costs, impossible choices Florida homeowners insurance is skyrocketing: Here’s what to know
More homeowners forced into California Fair Plan coverage
Most people never hear about the California FAIR Plan until their homeowner’s insurance gets canceled. “It’s not a normal home insurance policy,” said Amy Bach, executive director of the nonprofit United Policyholders. “It only covers fire, lightning, internal explosion. It doesn’t cover water damage, leaks, your toilet overflows.” Read the article…………………………….
Coastal property owners yet to embrace roof-girding grants (NC)
Maybe one North Carolina insurance provider should join the industry trend and advertise: “Hello Beach Plan policyholders! Do you need a new roof? Want to save on your property insurance? How about we help you out with as much as $8,000 toward a much stronger roof that is fortified to withstand storms? And don’t worry […]
Sarasota residents raise concerns about new FEMA flood zone map (FL)
Some Sarasota County property owners who didn’t need flood insurance have gotten notifications from their mortgage lenders — about 6,000 homes were impacted after they were moved into FEMA’s new flood zone mapping. Up to 1,000 along the Honore Avenue axis in Palmer Ranch are also included. Read the article…………………………….
Homeowners insurance carrier cutting Florida policies
Following recent major hurricanes like Ian and Nicole in 2022, and Idalia last year, Florida homeowners ought to prepare for increases of up to 23% this year, according to a new report by Insurify. Condo owners, for example, are bracing for the state to rule on a more than 50% rate hike request by Castle […]
Cost-Shifting Provisions In Governing Documents And The Value Of Carrying The Appropriate Homeowners Insurance Policy (WA)
In the last two and a half (2½) years, we have continued to see a trend of more Associations adopting cost-shifting provisions that push uninsured amounts to the individual owner. Typically, these cost-shifting provisions are related to damage that is caused by anything located in an individual unit or caused by misconduct of a unit […]
Floridians hit by Ian will pay more for flood insurance. What can Tampa Bay learn?
Less than two years ago, Hurricane Ian destroyed more than 5,000 structures in Lee County in Southwest Florida and caused major damage to 14,000 others. Now, from rebuilding efforts, more bad news has emerged: A federal agency says local officials weren’t following its rules, so more than 100,000 local homeowners will face spikes in flood […]
Insurance company to stop homeowner’s coverage in 9 states, including SD
Last month, State Farm announced that it would not renew insurance policies for 72,000 California houses and apartments, about 2 percent of its total policies in California. That announcement followed the company’s May 2023 decision to stop writing new policies in the state, citing “rapidly growing catastrophe exposure,” a move that was echoed by Allstate […]
“Wind Mit” inspections can reduce Florida home insurance premiums
Here in Florida, property insurance must go beyond a standard Homeowners policy. Because we experience hurricanes and tropical storms, windstorm and flood coverage are strongly recommended, and required when there is mortgage financing on your house or condominium. Over the past few years, Florida property owners have been hit with significantly increased premium costs and […]
California’s New Plans to Solve Home Insurance Crisis
California residents have seen several insurers end homeowner insurance policies as the state grapples with wildfires and natural disasters, but a new proposal seeks to solve the insurance crisis once and for all. In March, Ricardo Lara, California’s insurance commissioner, unveiled his new plan to let insurance companies use specific models around future catastrophes to […]
State Farm to pull out of 72,000 California insurance policies
State Farm General Insurance Company has announced that it will non-renew approximately 30,000 California homeowners, rental dwelling, and other property insurance policies. If you recall, last May, the insurer halted new homeowners policies being issued in the state, citing exposure related issues and a challenging reinsurance market environment. Read the article…………………………….
Allstate’s Florida Company Defends 54% Condo Rate Hike. Blames Reinsurance, Hurricane, Rapid Growth
When Allstate’s Florida unit, Castle Key Indemnity Co., entered the surging condominium insurance market in 2020, it looked like it had made a smart bet: Within two years, the carrier had added no fewer than 123,000 policies. Then came reinsurance price increases and $56 million in hurricane losses. Read the article…………………………….
As Home Insurance Costs Soar, 6 Million Owners Decide to Skip Coverage Altogether
As costs rise nationally, more than six million homeowners are reportedly skipping home insurance, which adds up to a total of $1.6 trillion worth of unprotected houses. A new study by the Consumer Federation of America, an association of nonprofit consumer organizations, finds that 7.4% of homeowners don’t have insurance, leaving them exposed to major […]
After post-Ida lawsuit spike, lawmakers seek big changes for home insurance claims (LA)
After Hurricanes Laura and Ida, thousands of Louisiana homeowners filed lawsuits against their insurance companies, alleging the insurers were lowballing and delaying their claims as they struggled to rebuild. The crop of lawsuits, many still winding through the state’s court system, has become central to the debate over how to stem Louisiana’s property insurance crisis. […]
Thousands of California Homeowners to Lose Their Insurance
Thousands of California homeowners will be out of luck as American National Group stops offering the state coverage. American National Group, which was purchased by Brookfield Asset Management Reinsurance Partners for $5.1 billion around two years ago, is yet another insurance agency to leave the state as home repair prices surge amid wildfires and heightened […]
New roof or roof coating? Insurance companies enact new restrictions on roof coverings (FL)
It’s an option many homeowners make, opting to make improvements to their roof without a full roof replacement. But one condo association said their route of getting a silicone coating instead of a new roof has them at risk of being dropped. Barbara Schmal is the treasure of the Water’s Edge Condo Association in Largo. […]
Oregon homeowners face rising premiums or limited property insurance options due to wildfire risk
Nancy Matela co-owns a vacation home in a wildfire zone northwest of Bend that has a new, annual property insurance premium of $9,000. It’s more than nine times what the company Safeco charged her a year ago. That policy remains her only option as well: Her broker couldn’t find her another one. Read the article…………………………….
HOA insurance premiums skyrocket across Colorado, driving up condo dues
To say Rosalie Hayes was stunned when she opened the letter describing a dues increase at her Arvada condo complex this year would be an understatement. “When I opened this letter, it was just like you could have knocked me over with a feather,” she said. “It was a shock.” Read the article…………………………….
Castle Key (Allstate) Defends 53.5% Condo Rate Hike, Blames Reinsurance, Ian, Rapid Growth (FL)
When Allstate’s Florida unit, Castle Key Indemnity Co., entered the surging condominium insurance market in 2020, it looked like it had made a smart bet: Within two years, the carrier had added no fewer than 123,000 policies. Then came reinsurance price increases and $56 million in hurricane losses. Read the article…………………………….
Army veteran whose condo insurance jumped 563% last year takes crusade to Tallahassee (FL)
Thomas Baker, the Daytona Beach Shores condo owner who complained about his building’s property insurance rate rocketing up 563% last year, took his concerns to Tallahassee this week.\ Unlike the lobbyists in their business suits, the 80-year-old Vietnam veteran and U.S. Army retiree wore his uniform to stand out in the Florida Capitol halls. Read […]
Castle Key’s 54% Condo Rate Hike Gets Hearing, Showing New Pressures in Florida
The Florida Office of Insurance Regulation next week will hold hearings on two property insurers’ requests for 54% average rate increases, one of which has already affected more than 105,000 condominium unit owners. Read the article…………………………….
Understanding the Interplay Between an Individual Unit Owners’ Policy and Their HOA Policy is Crucial for Submitting Condominium and Townhome Claims in California
Of the 39 million potential insureds making up California’s population, over 14 million – or over 35% – live in homeowners association communities. Therefore, understanding whether their property damage claims fall under their individual or association insurance policies is essential to properly recovering insurance benefits. Equally essential is understanding which policy takes priority when property […]
Homeowners insurance vs. co-op insurance vs. condo insurance
What kind of home you live in can significantly impact the type of insurance needed. There are separate, specialized types of policies for co-ops, condos and homeowners. The right policy for one often won’t even apply to another. Before purchasing a policy to protect your property, make sure you understand how that policy works and […]
What Is Condo (HO-6) Insurance? What Does It Cover?
As a condo owner, you don’t own the land or building your home sits on, but you still need good insurance for your unit and personal belongings. And you can’t rely on the homeowners association (HOA) master policy. Read the article……………………………….
Florida public adjuster says insurance companies are increasingly denying legitimate claims
The ABC Action News I-Team has been reporting on Florida’s growing property insurance crisis for months as part of our ongoing “Price of Paradise” series. We are now focusing on how a public adjuster could help you recover what you’re owed when it comes to filing an insurance claim. Read the article……………………………..
In push to remove homeowners from Citizens, the state-run insurer uses unlicensed inspectors (FL)
In late 2022, Melissa Marro got a notice from her private home insurance company that her rates would soon go up to a degree she found shockingly high. The only option, her insurance agent told her, was to see if she qualified for Citizens Property Insurance, the state created and taxpayer-owned property insurance company. Read […]
Condo Insurance Vs. Homeowners Insurance: What’s The Difference?
Having the right type of insurance is important whether you own a single-family house or a condo. Condo insurance and homeowners insurance both cover problems like fire, theft and liability claims against you but they differ in other ways. Read the article………………………………
High premiums keep Florida homeowners stuck with state’s insurer of last resort
Florida homeowners who can’t find coverage from standard insurers turn to Citizens Property Insurance Corp. for affordable home insurance. Florida’s state-created home insurer of last resort currently covers more than 1.4 million properties – making it the largest home insurer in the state by far. Read the article…………………………………
When Can Insurance Companies Require Participation in Mandatory Binding Arbitration? (FL)
In Florida, significant changes to insurance regulations have taken effect as of December 2022, with the implementation of Senate Bill 2A. This comprehensive bill addresses several critical areas, including flood coverage disclosure, assignment of benefits, prompt pay laws, and, notably, mandatory binding arbitration limitations for insurance claims. This blog focuses on the provisions related to […]
Is your home insurance poised to get pricier? There are warning signs (MA)
It’s hard to believe now, given the subsequent rigamarole. But when Julia Shanks first learned that her insurance company wouldn’t renew her policy because it wanted to reduce its risk with “coastal properties,” the North Shore resident wasn’t particularly concerned. Read the article……………………………….
As Storm Damages Mount, States Try to Make It Harder to Sue Insurers
Samari Lakes East, a nondescript condo complex near Miami, was battered by Hurricane Irma in 2017. The storm tore up the roof, causing water damage across Samari’s 635 units, home to retirees and blue-collar workers. The complex’s insurer, Heritage Property & Casualty Insurance, said the damage was only $22,107. In April, after a lengthy court […]
The Insurance Industry’s Brutal Climate Math
Eddie Lejuine, a trout fisherman living one town away, in Hackberry, used to pay $5,800 a year to a private insurer to cover the home he and his wife have lived in for decades, which now sits on stilts set at 16 feet above the water. The company dropped them in June 2021, right in […]
As climate risks mount, the insurance safety net is collapsing
…….But as climate change intensifies extreme weather and claims pile up, this system has been thrown into disarray. Insured losses from natural disasters in the U.S. now routinely approach $100 billion a year, compared to $4.6 billion in 2000. As a result, the average homeowner has seen their premiums spike 21 percent since 2015. Read […]
Dropped by Your Home Insurer? You Need to Take These Steps Now
“I can’t impress upon you the stress the board was under,” said a member of a small homeowners association (HOA) in Boca Raton, Florida. By law, their HOA has to have insurance, but they couldn’t find another policy after receiving a non-renewal notice. Eventually, Citizens — the insurer of last resort in Florida — said […]
Homeowners Flock to Last-Resort Insurance Policies
Robert Dubie was paying around $1,100 a year to insure his Paradise, Calif., home before it burned down in a wildfire five years ago. He rebuilt it with a host of fire protections, but it costs 10 times as much to insure. Read the article……………………………
Citizens Property is shifting policies to private insurers (FL)
As it tries to move customers into the private market after three years of massive growth, the state’s Citizens Property Insurance Corp. could start to see its number of policies decrease. Read the article………………………………….
Nationwide will not renew thousands of homeowners’ policies in North Carolina
Nationwide has chosen not to renew 10,525 homeowners’ insurance policies in North Carolina, citing concerns primarily related to hurricane risks. The move is expected to impact 4.4% of the insurer’s 237,652 policies in the state Read the article……………………………….
The vicious cycle of homeowners insurance: It’s increasingly expensive to protect homes in the disaster-prone areas that need it most
It’s getting harder to find insurance in regions prone to hurricanes and wildfires, which is forcing homeowners to make risky decisions and causing some owners to lose their property altogether, Insider previously reported. Read the article………………………..
Insurers Are Fleeing Wildfire-Prone California. The State Has a Fix.
California regulators are making reforms to the state’s insurance system, as companies flee amid rising climate risk that they say they aren’t properly compensated for. Read the article………………………..
Lahaina condos could trigger broader insurance woes (HI)
At least one condo project burned to the ground in the Lahaina fire. There are likely others damaged or destroyed, but although I’ve seen references to condos, I haven’t found a list identifying those with significant damage. Rebuilding of condominiums is a trickier affair than rebuilding a single family residence. Read the article………………………..
Home insurers cut natural disasters from policies as climate risks grow
At least five large U.S. property insurers — including Allstate, American Family, Nationwide, Erie Insurance Group and Berkshire Hathaway — have told regulators that extreme weather patterns caused by climate change have led them to stop writing coverages in some regions, exclude protections from various weather events and raise monthly premiums and deductibles. Read the […]
Aging Infrastructure & Insurance (CA)
It is no secret that the insurance industry, especially for common interest developments in California, is in crisis. After several years of wildfires and other natural disasters, carriers are not only charging higher premiums, but also revising eligibility requirements with regard to infrastructure and giving greater scrutiny to insurance applications. Read the article………………………..
Should Florida’s CFO step in to help Ian-battered homeowners escape contractor liens? (FL)
Insurance company Heritage Property & Casualty ignored the $2 million emergency claim on townhome community Parkwoods VI for months, and Panama City-based repair company SouthernCAT grew impatient. Communications between the homeowner’s association and its members show the repair company placed a lien on all the townhomes in February of 2023 at roughly $30,000 apiece. Read […]
Condo Home insurance An overview Of The Insurance
Condo Home Insurance, commonly referred to as HO-6 coverage, is designed specifically for condominium unit owners to protect both interior structures and personal belongings from financial disaster. It can help provide financial coverage against losses while offering financial security against liability exposures for your finances and belongings in case something occurs within or around your […]
Florida insurance regulators order Citizens back to drawing board on rates
Regulators have ordered the state-backed Citizens Property Insurance Corp. to revamp — and trim — proposed rate increases. Florida Insurance Commissioner Michael Yaworsky signed an order Friday that took issue with parts of a Citizens rate proposal that included increasing rates by 12 percent for homeowners with the most-common type of policies. Read the article………………………..
It’s Hurricane Season. Do You Know the New Rules on Flood Insurance?
Hurricane season is here. All co-op and condo boards — and especially those whose buildings are located in or near flood zones — need to be aware that the insurance landscape is changing right alongside the Earth’s climate. Read the article………………………..
When will they pay? Floridians say state not holding insurance carriers accountable post-Ian
It started in the master bedroom. The night Hurricane Ian threw itself against the edges of Southwest Florida, battering homes and sheeting down rain, its 145-mile-per-hour winds lifted the roof from the home where Sara Alvarez and her husband, Justin Jackson, sheltered. Read the article………………………..
Does Everybody Need Flood Insurance Now?
It has been an intense year for flooding, with no relief in sight. Scientists at the National Oceanic and Atmospheric Administration now say they’re expecting an above-normal Atlantic hurricane season this year. The updated forecast calls for 14 to 21 named storms, including as many as 11 hurricanes. Of those, up to five could become […]