Home News Another Property Insurer Is Pulling Out of Florida – NBC 6 South Florida

Another Property Insurer Is Pulling Out of Florida – NBC 6 South Florida

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Less than a month after United Property and Casualty Insurance’s rating was downgraded from ‘A’ to ‘M’, the company lost its financial stability rating and submitted plans to exit Florida.

In a news release, the company’s chairman and CEO cited “…substantial uncertainties regarding the future availability of reinsurance…” and said the move meant that “…the company and to protect its policyholders.”

Mark Friedlander of the Insurance Information Institute said, “The downgrade from A to M in early August put our reinsurance program in jeopardy and we were unable to obtain a fully insured reinsurance program for 2022. He said. “This is why Demotech withdrew his UPC rating entirely last week.”

Friedlander said the company also plans to exit three other states. According to the Florida Department of Insurance Regulatory Affairs, UPC has 166,000 policies in the state and is “…reviewing the company’s plans for an orderly run-off. It means that you do not have the option to renew at the end of the term of the term.”

“According to the UPC, they won’t start draining this business until 2023,” said Friedlander. “Florida regulations also require him to give 120 days’ written notice if he does not renew a customer’s policy so that renewals do not occur in 2022.”

Last month, the UPC qualified to participate in a temporary market stabilization agreement. This is a program recently created by states that allows insurers facing financial rating downgrades to meet requirements set by federally insured mortgages. The impact of the program is unknown.

“The Backstop program is not approved by the federally-backed mortgage system,” said Friedlander. “They just showed they valued it. That’s all we know. This put the UPC in a very precarious position.”

If you have a UPC policy, you’re protected, but “we encourage you to start looking for other coverage based on the recommendations of many independent agents across the state,” Friedlander said.

He said the Institute knows about a dozen companies that are no longer writing new businesses in our state, so your options may be limited.

NBC 6 reached out to UPC for comment but did not immediately hear back.

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