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Florida Property Insurers Face Stormy Financial Outlook

Florida Property Insurers Face Stormy Financial Outlook

Photo by Dylan Sauerwein on Unsplash

Florida is one of the most complicated insurance regions in the United States due to constant population increases, litigation propensity, and differing property landscapes ranging from new development to 18th century construction. All of this, of course, in addition to the effects of Mother Nature such as rising flood tables, varying weather patterns and natural disasters. Such an atmosphere creates the perfect storm for Florida Property Insurance companies, as it continues to keep homeowner’s insurance carriers in a hazardous financial environment.

Recently, Anchor Insurance gave their policyholders a sinking feeling when they announced that their current client base will be turned over to their competitors on a renewal basis as the company’s unfavorable financial outlook had them in too deep. Unfortunately, it’s not just Anchor Insurance struggling in today’s marketplace. Demotech, one of the primary insurance rating services, has advised that nearly a dozen different homeowners insurance carriers are facing a possible downgrade in their financial strength ratings.

Demotech, Inc provides Financial Stability Ratings which they’ve developed as a leading indicator of the financial stability of Property and Casualty insurers. The rating process provides an objective baseline for assessing solvency based upon changes in financial stability. In layman’s terms, when the balance sheet of an insurer looks shaky, Demotech alerts the public before the carrier takes a financial tumble.

Although Florida hasn’t seen a catastrophic collapse from their insurers recently, economists have deemed that the changing marketplace over the past several years has made it very difficult for the states homeowner’s insurance companies to maintain steady footing. There are several factors that have negatively impacted Florida property insurers over the past few years such as the rising cost of reinsurance, carrier competition which has driven down premiums, and judicial impacts that have revised claim settlement practices. Unfortunately, the widespread financial decline of property insurers can often be interpreted as an indicator of a pending hard market where insurance providers impose strict underwriting standards and issue a limited number of policies, thus driving up the cost of premiums.

Due to the declining financial stability of some insurance providers, it is important to speak with your insurance agent about the financial strength of carriers prior to obtaining coverage. Many consumers become so intent on savings that they neglect the importance of insuring their home with a financially sound insurance company. For more information on insurance carrier financial stability or Demotech ratings, contact your trusted Moore Resources insurance agent.

 

 

 

Moore Resources is an Independent Insurance Agency located in St. Petersburg, FL and offering Homeowners Insurance, Auto Insurance, Personal Insurance and Business Insurance. Our reach extends beyond the Tampa Bay area to the entire state of Florida. Moore Resources has regionally been dedicated to serving the local residents of Pinellas, Hillsborough, Polk, Pasco, Manatee and Sarasota counties; including St. Pete, Tampa, Clearwater, Bradenton, Brandon, Dunedin, Gulfport, Lakeland, Largo, Lutz, Palm Harbor, Pinellas Park, Riverview, Ruskin, Seffner, Seminole, Temple Terrace, Tierra Verde, Town n Country,  and the Gulf Coast Beaches.

 

The purpose of this blog is to present general information only. It does not interpret specific policies or coverage. In order to obtain detailed information regarding your insurance, contact a licensed insurance agent.

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