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Florida property insurance company goes under,
leaving policy holders scrambling |
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Article Courtesy of WESH 2 NEWS
By Sheldon Dutes
Published
April 4, 2022
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WATCH VIDEO |
ORLANDO -- Just this year, two
Florida property insurance companies are liquidating.
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Florida's already shrinking property
insurance market is about to get a little smaller, with
fewer options for homeowners to insure their home.
State regulators ordered the liquidation of Avatar on March
14.
Avatar told its policyholders their policies would be
canceled by April 13.
But what about policyholders who filed claims before Avatar
defaulted?
Avatar's website says their account with Bank of America is
frozen.
The company also says info about uncashed claims will go to
the Florida Insurance Guarantee Association.
The association typically handles claim payments in
situations like these.
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Avatar is the second Florida property insurance
company this year that couldn't pay its debts.
The state ordered Saint John's Insurance Company into liquidation in
February.
Since 2017, WESH 2 investigates found out that a total of six Florida
property insurance companies have gone into receivership.
The Insurance Information Institute's Mark Friedlander said it's
possible that list could grow by the start of hurricane season.
"We're being told there are potentially five or six other insurers that
are heading towards receivership based on their current financial
situation," Friedlander said.
Roof replacements and litigation have impacted a lot of companies who
either pass those rising costs on to their policyholders or stop
operating in the state.
If someone is concerned about the financial health of an insurance
company, they can ask their agent for the company's financial report.
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