Yet another Florida property insurance company has lost its financial stability rating issued by Demotech, which provides independent financial ratings that reinsurers use to price coverage. Southern Fidelity Insurance Company lost the rating in part because the company failed to purchase adequate reinsurance coverage designed to protect policyholders in the event a major event wipes out the company’s financial reserves.
Demotech reported on its website that Southern Fidelity had already informed agents that it was suspending new underwriting and renewal policies while the company sought to secure reinsurance for the 2022 hurricane season.
“After completing our review of first quarter 2022 financial statements and considering that the company’s reinsurance coverage for the 2022 hurricane season is not complete as of June 2, 2022, Demotech has withdrawn the financial stability rating previously assigned to Southern Fidelity Insurance Company,” the company said in a written statement published on its website.
In recent months, several other property insurers with substantial operations in Florida have run into financial trouble. Demotech downgraded Lighthouse Property Insurance Corp. in March, and the company was later placed into receivership and ultimately declared insolvent. In April, FedNat insurance entered into a consent agreement with the Florida Office of Insurance Regulation after it filed notice with federal regulators that it faced “substantial doubt regarding its ability to continue as a going concern.”
State lawmakers passed new legislation designed to bolster the industry against litigation, and also provided $2 billion in reinsurance protection at no additional cost.
Been a Florida permanent resident for 11 months. just paid for my 3d insurance policy. still waiting refunds from the priors who have elescted to do business in other states. Reform is overdue. Real problem with wind/roof fraudulent claims statewide per my agent.
The roofing scams are as old as Florida. As a newcomer you should be made aware that Florida is the land of scams. The state does very little to protect consumers. You are on your own, The only way to improve the homeowners insurance problem is to go back in time and elect officials that believe in climate change, and will do something about protecting homes from rising sea levels, address the sewage problems that have polluted the aquifer, giving you drinking water that you can’t drink. The roofing scams are a result of politicians blaming consumers for falling for the scams, and doing nothing about it. The winters are nice, but are they worth it?
Ladygray. Climate change! Really? The biggest scam of all time! Sheesh!
wow thanks for that help