southern fidelity

42,000 Louisiana homeowners dropped by insurance company Friday; State Insurance Commissioner addresses crisis

NEW ORLEANS (WVUE) – 42,000 homeowners are looking for a new insurance policy as of Friday. The company, Southern Fidelity dropped them and now they have 60 days to find a new policy.

Nearly 100,000 policyholders total have been dropped by Southern Fidelity, Lighthouse Excalibur and Maison.

Insurance Commissioner Jim Donelon says six companies have pulled out completely and more than 50 have stopped writing new policies below I-10 and I-12, making the state’s insurer of last resort, Louisiana Citizens, the only option for most.

“As we get further away and hopefully go unscathed through this hurricane season, more of those companies will return to the market, I am certain, as it happened 15 years ago after Katrina and Rita,” Donelon said.

Southern Fidelity customers have until September 13 to find a new policy or sign with Citizens.

Lighthouse and Maison have until August 28.

If you sign with Citizens, the coverage will be retroactive back to the day your policy was canceled, so there’s no gap.

Donelon says the number of Citizens’ policies has jumped from 35,000 to 82,000 and he expects it to grow to 95,000.

That overwhelmed the system, which only has two computer servers. That’s why

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July 17, 2022 by INSURANCE

4th Florida property insurance company has gone bankrupt

TALLAHASSEE, Fla. – Nearly 80,000 Florida homeowners will have to find new insurance, after Southern Fidelity declared bankruptcy. The Tallahassee based company is the fourth insurer to declare insolvency since February.

Southern Fidelity’s bankruptcy filing is concerning because, according to insurance agents, a large portion of those dropped customers will likely have to reinsure their homes using Citizens Property Insurance — the state-owned property insurance company. Insurance agents say Citizens has ballooned as a private company, and just one hurricane could detrimentally affect homeowners across the state.

Southern Fidelity’s shutdown comes less than a month after state lawmakers held a special session to stabilize what’s been described as an industry in crisis. The company announced in early June, that it won’t be able to purchase reinsurance in time for the 2022 Hurricane season.

According to state insurance records: Lighthouse Property Insurance Corporation, Avatar Property and Casualty Insurance and St. Johns Insurance Company shut their doors over the past four months. Local insurance owner and agent, Sean Way, tells News4JAX, finding some of these homeowners affordable new policies can be challenging.

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“Especially for those that are on fixed incomes, they have now retired,” Way said. “And they

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June 21, 2022 by INSURANCE

Wave of homeowners forced to use Citizens Insurance

WEST PALM BEACH, Fla. — Homeowners in Florida are signing up for Citizens Property Insurance Corporation at a frantic pace as hurricane season begins and the state’s insurance crisis seems to deepen.

Citizens Property Insurance Corporation is currently writing policies at a frantic rate, approaching 900,000 in Florida.

It’s an issue that can have consequences for all Floridians.

Insurance agent Robert Norberg of Arden Insurance in Lantana is among the growing list who is using Citizens Insurance.

Robert Norberg, Arden Insurance, June 9, 2022

WPTV

Robert Norberg discusses the influx of people using Citizens Insurance in Florida.

“I will be in Citizens along with the rest of the folks,” Norberg said.

RELATED: Citizens Insurance cites growing underwriting losses

There are plenty of folks using Citizens Insurance — more than 887,000 by the latest count. This number is growing and growing.

“Currently Citizens, I believe, is taking over 30,000 policies a month,” Norberg said. “The more people in Citizens, the worse it can be for the Florida economy and Florida consumers.”

What’s driving this is mostly canceled policies and suddenly insolvent companies cutting homeowners loose right at the start of hurricane season.

The latest company — Southern Fidelity — failed to meet financial requirements and is now endangering

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June 16, 2022 by INSURANCE
April 2024
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