The Florida Office of Insurance Regulation has authorized a “assessment“O un cargo de emergencia para cubrir los costos de los reclamos de aseguradoras que se declararon insolvents. the state.
Homeowners will see a 1% increase in their insurance policies from October to cover claims from businesses that have gone bankrupt.
Dulce Suárez Resnick, a property insurance specialist, warns that this “1% comes because the companies have gone bankrupt”.
The state-approved plan responds to a request from the Florida Insurance Guaranty Association (FIGA). Non-profit agency created by the state to settle claims from defaulting insurers.
“In this liquidation, the department of FIGA, the Florida Insurance Guarantee Association must raise funds to cancel these refunds to people who have terminated their policies and are also paying all claims that were in effect at the time of bankruptcy and all claims within the first 30 days of that company’s liquidation.
Under the order, signed April 10 by state insurance commissioner Mike Yaworksky, FIGA will receive a $150 million short-term loan to help cover insurance claims.
But then the agency will issue up to $750 million in bond products to repay the funding. Money from the 1% fee will be used to pay off the bonds. It was approved after United Property and Casualty Insurance filed for bankruptcy.
“We have lost 11 insurance companies in 2 years, since January 2021”, indicates Dulce Suárez Resnick, specialist in home insurance.
According to the property insurance expert, those who have a policy will feel it in their pocket and there will now be fewer options.
“With every business going bankrupt, it means we have fewer insurance companies to be able to insure the homes of people in Forida state. What has happened is that Citizens continues to grow and it is the only market in many parts of the state of Florida,” the property insurance specialist warns.
The expert clarified that hurricane losses are one of the reasons insurance companies went bankrupt.
Two charges on insurance policies were put in place last year. One of them ends on June 30 and there is supposed to be ratings to other types of insurance, although this is unlikely to affect car insurance.