Recently, there has been a major concern with homeowners insurance coverage in Florida. Many companies are either scaling back their coverage, shutting down, or simply leaving Florida.
But why is this happening? And what should you do if your insurance company is closing down shop in the state of Florida?
Why Are Insurance Companies Leaving Florida?
There are a variety of reasons why insurance companies are either leaving Florida, scaling back, or even closing down. Some of the reasons for this include:
- Rising Hurricane Risk. Hurricanes over the last couple of decades have been frequent and nasty. With Wilma (2005), Irma (2017), Michael (2018), and Ian (2022), the damage has really started to add up. Insurance companies rely on people paying for insurance without needing to use it often. With so many hurricanes and payouts, it has become too risky for many providers.
- Fraud. While most contractors are on the level, some use hurricane damage as an excuse to charge insurance companies a lot of money for what is actually minor damage. If the insurance company does a deeper inspection and decides the damage wasn’t covered, the contractor may turn around and sue the insurance company.
- Reinsurers Leaving. As funny as it may seem, insurance companies have insurance companies. Reinsurers allow primary insurers to transfer some of the risk of insuring the policyholder to the reinsurer. Because of the cost of litigation rising and other factors, reinsurers have left—which puts insurance companies in a difficult situation of their own.
What Do I Do If My Insurance Company Is Leaving?
If your insurance company is leaving the state or closing down, they will cancel your policy. If it is unclear as to why they are canceling, give them a call and speak with a representative to learn more.
If the reason your insurance is being canceled is due to the company leaving or shutting down, start looking for quotes so you can transition quickly to a new insurance provider. In order to get the best coverage possible, make sure your home is in good condition. Take care of any repairs you may have been sitting on for a while in case the insurance company decides to inspect your home.
What if I Have a Claim My Insurance Company is Trying to Deny?
You are still covered until your insurance is fully canceled. If your insurance company is trying to deny your claim because they are leaving the state, contact Colucci Law Group. We will defend you and help you to get the money you are owed.
Colucci Law Group is also able to file a claim for you. We’ll defend your rights and get you an appropriate settlement.
If you suspect that you are the victim of a bad-faith insurance claim denial or you would like support filing a claim, we can help. The Colucci Law Group has the resources to assess the validity of your claim at no cost to you. For a free consultation, email us or call our Clearwater office at 727-733-9438. You may also call our Fort Myers office at 239-378-7800. Our team assists victims of bad-faith insurance claims across the state of Florida.