Homeowners insurance crisis: DeSantis says
‘significant reforms’ coming as company drops 68K policies
Article Courtesy of Channel 8 On Your Side
By Mahsa Saeidi
May 21, 2022
TAMPA — With two weeks left until
the start of the Atlantic hurricane season, Florida homeowners are
FedNat Insurance Company and its sister companies are cancelling more
than 68,000 policies, 8 On Your Side has learned. The news comes one
week before the property insurance crisis special session is scheduled
to begin in Tallahassee.
A few years back, FedNat Insurance
Company was one of the largest carriers in the state. Last
year, they reported more than $103 million in net losses.
Last month, they were downgraded by the rating agency
FedNat is now dropping 68,200 policies to stay afloat,
desperate to reduce their exposure in Florida. Florida’s
Insurance Commissioner David Altmaier signed a consent order
on Friday allowing FedNat to drop the policies.
Commissioner Altmaier wrote that the early cancellation is
an “extraordinary” step reserved for companies in “hazardous
The cancellation notices will soon be
hitting mailboxes. Policyholders will have just 45 days to
find new coverage. Time will be up June 29 – in the midst of
Man behind most Florida insurance company ratings paints
grim picture if crisis isn’t addressed by hurricane season
“Failing, I think, is just not an option,” Gov. Ron DeSantis
said Monday, spelling out Florida’s lawsuit problem. “We
have 8% of the property claims nationwide and 78% of the
According to data released by the Office of Insurance
Regulation, three out of four property insurance lawsuits in
the entire country in 2019 happened in Florida. The state
had no major hurricane that year.
“We did a package last year that had some good stuff but it
just didn’t do enough, I think, to really stabilize this
situation,” Gov. DeSantis said. “This is a market that has
been problematic in this state for a long time.”
Right now, legislation is being finalized for the special
session. Sources tell 8 On Your Side the bills outlining
changes could be filed by Wednesday.
“The good news is, on property insurance, I think we’re
going to get really, really significant reforms,” said Gov.
The situation is dire, with fewer companies in Florida, more
policy restrictions on the age of your roof and rates at an
all-time high. Many policyholders may end up with Citizens,
the state-backed company, or with no coverage at all.