Friday, March 31, 2023

Insurance crisis spreads in Florida

home insurance crisis They have spread to Florida, with dozens of companies declaring bankruptcy, forcing hundreds of thousands of families to pay higher premiums or go without coverage.

The home insurance sector, in crisis for several years, worsened after the passage of Hurricane Ian, which caused the second largest insured loss in history, with damages estimated between $50,000 and $65,000 million, according to a report. Fox Business.

Amid a complicated context where more than half a dozen private insurers have already declared bankruptcy in the past year, another half dozen are faltering and others have just left the state, Florida Gov. Ron DeSantis, tries to attract more companies From private insurance to state, there’s a gaping hole in policies available to homeowners who are running out of options to fill.

In the absence of affordable home insurance, citizens have to sign up with the state insurer of last resort Citizens Property Insurance Corp., with policies that can cost up to $6,000 per year and do not include flood protection.

Insurers who remained in Florida tightened their eligibility requirements and, in some cases, dropped policyholders who did not meet the stricter standards.

The last state public insurer already has more than a million customers because it is the only option in some parts of the state and, as a result, an estimated 12% of Floridians do not have home insurance, something that could mean a greater risk of hurricanes. The proximity of the start of the season.

Additionally, 9% of insurance claims nationwide come from Florida, and 79% are due to home insurance claims.

In bills passed to deal with the crisis and stabilize the insurance market, the government abolished so-called one-way attorney fees, which require insurers to pay a plaintiff if they lose a case, but not the reverse. .

Another important change focuses on the fraudulent roofing claims that are possible when homeowners sign over their “assignment of benefits” to an unscrupulous contractor who will sue for non-existent repairs.

Nation World News Desk
Nation World News Desk
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