Friday, July 15, 2022 / by Dave Magua
Florida Property Insurance Market Remains Challenging Despite Special Session
Southern Fidelity Insurance Company is the fourth insurer ordered into liquidation so far this year, leaving an estimated 78,000 policyholders in Florida scrambling to find new coverage in 30 days, just as hurricane season gets underway.
Southern Fidelity Insurance Company is the latest property insurer to shut down in Florida.
"Effective July 15, 2022, all Southern Fidelity policies are going to expire," said Mark Friedlander of the Insurance Information Institute.
This is the fourth insurer ordered into liquidation so far this year, leaving an estimated 78,000 policyholders in Florida scrambling to find new coverage in 30 days, just as hurricane season gets underway.
Because the Florida property insurance market is so unstable right now, it's very difficult to find coverage for your home," Friedlander said.
That's why Friedlander says most of those impacted will likely end up with Citizens, the state-created insurer.
"They have already surpassed 900,000 policies in place as of June 30th," he said. "They have become the largest home insurer in the state of Florida."
Dulce Suarez-Resnick, a vice president at Acentria Insurance in Miami, says finding new coverage for clients has been especially challenging because there are fewer options available, even after recent changes passed by the state legislature.