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Was your insurance policy canceled unexpectedly in Florida?

Struggling to find new coverage after your Southern Fidelity, Lighthouse, Avatar Property & Casualty, or St. Johns  policy was canceled? Let us know your concerns and let’s explore your options.

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Thursday, December 8, 2022

Are you having trouble finding new coverage after your Southern Fidelity, Lighthouse, Avatar Property & Casualty, or St. Johns policy was canceled?

This can be a frustrating and overwhelming experience, especially if you’re unsure of what your options are. In this article, we will explore the reasons behind these cancellations, alternative coverage options, and tips for finding new coverage.

Floridian homeowners are in a state of crisis. Home insurance costs are skyrocketing and availability is plummeting. In 2021, some homeowners saw a renewal increase of 50% or more. Now, homeowners are facing an even bigger crisis: non-renewed or canceled homeowners’ policies. Property owners of single-family homes, condos and renters will soon be looking for homeowners’ insurance as more insurance carriers leave the state.

Understanding the Home Insurance Cancellation

Why Were These Policies Canceled?

Southern Fidelity, Lighthouse, Avatar Property & Casualty, and St. Johns are all property and casualty insurance companies that have canceled policies for various reasons. The most common reason is the company’s financial struggles, which can result in the state stepping in to liquidate the company. Other reasons include inadequate underwriting, high risk in specific geographic areas, and high claim payouts.

Unfortunately, there are more to come…

  • Southern Fidelity will be canceling nearly 70,000 residential policies 
  • FedNat Insurance Co. will be canceling over 68,000 residential policies
  • Monarch will be canceling over 8,000 residential’s policies
  • Maison will be canceling over 3,000 residential’s policies

What Happens When Your Policy is Canceled?

When your policy is canceled, you will receive a notice from the insurance company explaining the reason for the cancellation and the date that your coverage will end. After this date, you will no longer have insurance coverage for your home, car, or other assets.

If you find yourself in this situation, don’t panic – we have been in the personal insurance business for over 50 years and are readily available to ensure you have the coverage you need in a timely matter. Our Florida team of experts can quickly create a replacement policy for you and your personal lines of insurance needs.

Why was my homeowners insurance canceled?

On June 3, 2022, Demotech withdrew its financial stability rating assigned to the Southern Fidelity Insurance company after failing to secure reinsurance for the 2022 hurricane season. Shortly thereafter, Southern Fidelity entered into receivership and is to be liquidated. It is the fourth insurer that was declared insolvent since February, leaving thousands of previously insured customers without a policy.

How does this impact homeowners?

This situation puts homeowners in a tough position. Not only will it be harder to find homeowners insurance – it will cost more. To layer on the challenges, some available insurers will only cover homes valued up to $700,000 and replacement costs have gone up 16%. If your home has appreciated in value, even if you have coverage, it’s time to relook at your policies to ensure you have the right level of coverage for your property.

For those trying to purchase a property, this could make the closing process even more complicated.

What is a receivership?

receivership is a process that is put in place to protect a company. A period of receivership may be thought of as a means of protecting a company in financial trouble. During this time, A “receiver,” or trustee, steps in to manage the entire company, its assets, and all financial and operating decisions.

Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your legal representative or medical professional for information specific to your legal or medical needs.

Coverages for Personal Insurance

At The Horton Group, we understand you want what’s best for you and your loved ones. That’s why we offer comprehensive coverage for individuals and Private Clients looking to protect their unique lifestyles and assets.