Florida property insurance company liquidated

Just this year, two Florida property insurance companies are liquidating.Florida’s already shrinking property insurance market…

Just this year, two Florida property insurance companies are liquidating.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.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.

Just this year, two Florida property insurance companies are liquidating.

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.

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.