At a time when you thought that most Florida homeowners insurance cancellations were behind us, new threats to your coverage are appearing on the horizon. And this new round of cancellations is happening at a time when Florida home insurance rates are about to go us as our economy continues to struggle.
For starters Florida’s largest private home insurance company continues to discuss the terms of its exit from the state. If that exit goes forward, over 700,000 homeowners insurance policies in Florida will be cancelled. Newer Florida start-up insurance companies are doing selective policy cancellations in certain zip codes when they need to balance their exposure or to comply with the terms of their reinsurance coverage.
Many Florida home insurance companies are embarking on ambitious home inspection plans. If those inspections uncover issues that the companies were not aware of, your Florida homeowners insurance policy could be at risk of cancellation. That could include anything from a home in poor condition to one that is missing hurricane shutters. Finally, Florida home insurance rates are starting to increase again – the majority will experience double digit increases.
If your Florida home insurance policy is cancelled here is what you can do to find new coverage. For starters, don’t panic. Florida law requires insurance companies to give you proper notice before cancelling your policy. That will give you adequate time to find new coverage before the 2010 Florida hurricane season. Talk to at least five different independent Florida homeowners insurance agents about your situation. That will ensure that you’ll be able to reach most of the Florida home insurance companies still writing new business. While your current Florida home insurance agent can present you with some alternatives, chances are that you won’t be presented with all the companies capable of covering your home.
Look for Florida home insurance companies that have shown a willingness to cover older Florida homes. Some companies will not deny your home coverage due to its age if the major systems in your home have been updated. Ask each Florida home insurance agent for companies that are willing to cover homes in coastal counties and those located near the coast. Again some companies will offer you a policy if your home is near the coast if it meets their distance from water setback and if it has Florida hurricane shutters.
Get a quote from as many companies that are interested in covering your home and make sure each quotes has identical coverage. Find out how long each company has been selling Florida home insurance. Research each company’s records for customer service and complaints. Ask your agent about the company’s risk diversification across Florida and in other states as well. What you are looking for are companies that have spread their risk across a significant number of Florida counties and into other states. Check out the financial ratings assigned to each company and the amount of surplus each company has available to pay claims. If you are considering two different companies that have the same financial rating, select the company that has a larger surplus and more risk diversification.
While it is not good news to lose your Florida homeowners insurance coverage, stay calm. Contact several Florida independent insurance agents and obtain all of the information described above. This will increase your probability of finding a new Florida homeowners insurance company if your coverage is cancelled.
