According to an article in the South Florida Sun Sentinel, the number of Florida homeowners who will be receiving cancellation – or nonrenewal - notices exceed 50,000.
Paul Handerhan, president of the consumer-focused Federal Association for Insurance Reform told the Sun Sentinel that this could be just the start as other insurers move to cancel policies they deem “risky” - such as older homes with roofs, electrical systems and plumbing that have not been upgraded.
A breakdown of the cancellations is as follows:
- Gulfstream Property and Casualty – may cancel 20,311 policies before their terms expire with 45 days’ notice; they include 932 condominium owner policies and 47 tenant policies.
- Universal Insurance Company of North America – may cancel 13,294 policies with 45 days’ notice.
- Southern Fidelity Insurance Company – cleared to cancel 19,600 residential policies over the next 14 months; approximately 2,300 insurance customers will be sent notices of non-renewal with less than the required 120 days’ advance notice.
More insurers will consider canceling policies over the coming months, as they look into dropping risky and/or unprofitable policies – all while refusing to insure older homes whose roofing, electrical, and plumbing are not up to current standards, warned Federal Association for Insurance Reform president Paul Handerhan.
“For the average consumer, the outlook is not bright,” Handerhan told South Florida Sun Sentinel. “There will be less options at higher price points.”