TAMPA, Fla. (WFLA) — Another property insurance company announced Thursday it will be pausing new business in Florida “until further notice” amid the state’s ongoing homeowners insurance crisis.
According to a news release obtained by 8 On Your Side Investigative Reporter Mahsa Saeidi, American Traditions Insurance Company will temporarily stop taking new business starting next week. The pause impacts homeowners insurance policies, condo unit owners policies and dwelling policies often used by landlords.
In the release, the company noted that the changes are being made “in order to manage our exposure and remain consistent with our growth projections.”
The changes made to business are effective immediately, according to American Traditions. However, the company said it would honor any eligible quotes that were previously saved through the end of business day Aug. 5.
American Traditions is just the latest of several companies that have either paused new business in Florida or gone bankrupt amid the property insurance crisis impacting thousands of homeowners across the state. Those companies are:
– American Traditions Insurance Company: Limiting new business
– Universal Property and Casualty: Limiting new business
– Progressive Home: Limiting new business
– Monarch: Limiting new business
– Heritage: Limiting new business
– Florida Farm Bureau: Limiting new business
– Centauri: Limiting new business
– Bankers: Limiting new business
– Gulfstream: Insolvent as of 2021
– Avatar: Insolvent as of 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 potential ratings downgrade that threatened coverage for homeowners. Florida officials had warned of financial chaos if those downgrades happened 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 for the ratings downgrade crisis earlier this week. Regardless of whether a company is downgraded, the governor said impacted homeowners will be able to keep their policies.
“We can use Citizens Insurance as kind of the reinsurer of last resort,” DeSantis said, referring to a program state regulators created with Citizens Property Insurance, providing reinsurance to troubled companies.
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