special session

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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4th insurance company limits writing new business in Florida

4th insurance company limits writing new business in Florida

TAMPA, Fla. (WFLA) — A Tampa Bay area homeowner is angry at state lawmakers.

Tina Hemme, a health care worker from Palm Harbor, is scrambling to secure property insurance before a storm hits. Meanwhile, 8 On Your Side has learned a fourth insurance company is now limiting business in the Tampa Bay area.

“They’re not listening,” Hemme said. “They may say they care about their constituents, I don’t believe it.”

During a special session last month, state lawmakers passed significant reforms. They say the market will eventually stabilize. Until that happens, 8 On Your Side is striving to continue to expose the reality on the ground for families.

A month ago, Lighthouse Property Insurance sent Hemme a cancellation notice. The company was losing money and was forced to liquidate.

“We have been – literally every day – stressed, stressed, stressed,” Hemme said. “Right now, paradise doesn’t look like paradise to us anymore.”

As Hemme waits for Florida’s new property insurance laws to kick in, another company – Heritage Insurance – is suspending new business in multiple counties, including Polk County.

Heritage is joining three other insurers also declining to take on new homeowners in parts of the state: Southern fidelity,

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