TAMPA, Fla. (WFLA) – Another insurance company has gone bankrupt. And now Floridians are on the hook.
An appraisal comes on top of staggering premium hikes for homeowners across the state.
Jane Lawson’s property insurance bill has gone up by more than $2,000.
Next month, Jane’s annual bill jumps from under $3,000 to over $5,000.
Now she is thinking of renting or moving.
“The first thing I thought of was that we’re going to have to sell the house and move to another state,” Jane said. “We have never seen anything so high.”
Despite recent reforms, homeowners like Jane are still being hit by dramatic premium increases. Starting October 1, Jane’s bounty and yours will once again increase by 1%.
Florida Insurance Commissioner Michael Yaworsky approved the request from the Florida Insurance Guaranty Association, or FIGA, a state-owned, nonprofit entity that steps in to help cover claims in the event of an insurance company’s bankruptcy. ‘assurance.
In a letter sent to Commissioner Yaworsky on April 4, FIGA Executive Director Corey Neal wrote “emergency assessment is required” to process the claims.
No specific company is named.
But insurance experts say FIGA revealed more at a March 31 board meeting.
“With this UPC insolvency, FIGA’s pending claims have gone from around 9,000 to now nearly 25,000 pending claims,” said Rob Samuels, an insurance broker. “It’s a mess, but the people with UPC are very, very grateful right now that FIGA is stepping in instead.”
8 On Your Side followed the demise of United Property and Casualty Insurance or UPC. At one time one of the biggest suppliers, now they are insolvent and we are all liable for unpaid claims.
“It’s just another little thing to think about,” Jane said.
Before retiring, Jane worked in insurance. She was an underwriter, reviewing policies and identifying risk to businesses.
“We kind of subsidize everyone who lives too close to water and then we also subsidize everyone who submits fraudulent claims and that’s not fair,” Jane said.
We have seen several businesses fail in Florida. That’s why you already pay FIGA fees. This new increase is quite minor.
If your premium is $3,000, starting October 1, you will pay $30 more.