Property Insurance Reform

Florida's scary property insurance market is becoming more welcoming to new
insurers thanks to recent changes in laws that are helping them financially. Four new homeowners insurance carriers have entered the Florida market since the state passed legislation in January to lower premiums and entice new carriers to write policies. Another three companies have applications pending with regulators to begin doing business in the state, according to the Florida Office of Insurance Regulation. New carriers entering the market is a sign companies are finding it more attractive to do business in the Sunshine State after the Legislature expanded the Florida Hurricane Catastrophe Fund in January to give insurers cheaper reinsurance, which is insurance for insurance companies. Legislators set aside $250 million to provide matches of up to $25 million per company to build capital reserves.

One of those changes involved Citizens Property Insurance Corp., the state's insurer of last resort, no longer being able to offer coverage on $1 million homes in order to limit risk exposure.

Posted by Donald Urschalitz P.A. at April 25, 2007 10:14 AM