TAMPA, Fla. (WFLA) – Another property insurance company announced Thursday that it will suspend new business in Florida “until further notice” amid the state’s ongoing homeowners insurance crisis.
According to a press release obtained by the 8 On Your Side Investigative Reporter Mahsa Saidi, American Traditions Insurance Company will temporarily stop new business starting next week. The hiatus affects homeowner’s insurance policies, condo unit owner’s policies, and condo policies frequently used by homeowners.
In the announcement, the company noted that the changes are being made “in order to manage our exposure and remain consistent with our growth projections.”
Changes made to the business take effect immediately, according to American Traditions. However, the company said it would honor any eligible quotes that were previously stored until the end of the business day on August 5.
American Traditions is just the latest of several companies that have either cut off new business in Florida or filed for bankruptcy amid the home insurance crisis that has affected thousands of homeowners across the state. These companies are:
– American Traditions Insurance Company: Limitation of new business
– Universal property and victims: Limitation of new business
– Progressive House: Limiting new business
– Monarch: Restriction of new business
– Legacy: Limitation of new business
– Florida Farm Bureau: Limiting new business
– Centauri: Restriction of new business
– Bankers: Restriction of new business
– Gulfstream: Insolvent as of 2021
– Avatar: Insolvent since April 13, 2022
– Lighthouse: Insolvent as of May 28, 2022
– FedNat: Insolvent as of June 29, 2022
– Southern Fidelity: Insolvent as of July 15, 2022
Additionally, more than 20 companies are facing a possible downgrade that threatened coverage for homeowners. Florida officials had warned of financial chaos if the cuts were to happen because mortgage providers Fannie Mae and Freddie Mac require homeowners to have a policy with an A-rated company.
Gov. Ron DeSantis announced a temporary fix to the downgrade crisis earlier this week. Regardless of whether a company goes under, the governor said affected homeowners will be able to keep their policies.
“We can use Citizens Insurance as a sort of reinsurer of last resort,” DeSantis said, referring to a program state regulators set up with Citizens Property Insurance, offering reinsurance to troubled companies.
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