Florida home insurance firm now beneath authorities supervision – wflx
Thousands of homeowners who were notified of the termination of their insurance in the past month have now reached or are reaching the deadline to find new coverage.
A Sarasota-based company that has sold more than 20,000 policyholders is now under supervision.
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The Florida Office of Insurance Regulation has now placed Gulfstream Property and Casualty Insurance under supervision. The regulator said the decision was made because the minimum funds required to pay policyholder claims were not met.
But what does that mean for those who still have their home insurance with Gulfstream?
"For the consumer, it means preparing to likely find another provider," said Robert Norberg, president of Arden Insurance Associates in Lantana.
Stuart homeowner Dan Hauser was recently dropped by Gulfstream Property and Casualty.
Just over a month ago, thousands of Gulfstream property and casualty insurance customers received notices in the mail that their homeowners' insurance policies had been discontinued.
Stuart's Dan Hauser was one of those homeowners.
"I'm really glad they let me down because if they hadn't it would be with an insurance company that probably wouldn't even be able to pay a claim if something should happen," said Hauser.
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That's his reaction after learning that Gulfstream is now overseen by the Florida Office of Insurance Regulation for failing to meet the minimum amount to pay policyholder claims.
“The minimum capital requirement here in the state of Florida is $ 15 million for each airline. I think when they failed to meet that, their rating was downgraded. The Ministry of Insurance became aware of this, ”said Norberg.
Norberg said this usually means the insurance company's current policyholders are facing some changes.
Robert Norberg explains what it means when home insurance is put under government supervision.
"The Department of Insurance will ensure that consumers are protected. The only good thing is that, as a licensed and licensed transport company, they will have access to the Florida Guarantee Fund in the event the company goes into liquidation and is unable to do so." Payment claims, this guarantee fund comes to pick up those claims for these people, "Norberg said." Maybe there will be another airline that will step in and take a lot of policies, maybe not, but they will be notified by the receiver in the insurance department, like many Days they have to find new insurance cover. "
The silver lining for Hauser is that for a few hundred more dollars a year he found new and more extensive coverage.
"The policy I have now is … for a higher coverage because my property is now worth more than it was a year ago, so that was nice," said Hauser.
The Florida Office of Insurance Regulation said Gulfstream is not currently renewing or writing new policies.
Click here to read the recent Consent Order issued against Gulfstream.
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