As another hurricane season bears down on the state, more than 50,000
State insurance regulators recently authorized “extraordinary” terminations of thousands of policies of
And the bloodletting will likely continue over the coming months with other insurers seeking to shed risky or unprofitable policies while refusing to insure older homes with roofs, electrical systems and plumbing that have not been upgraded to comply with current building codes, said
“For the average consumer, the outlook is not bright,” he said. “There will be less options at higher price points.”
The consent orders by the state
Insurers have been reducing their exposure in the three
The consent orders, signed by Insurance Commissioner
Many, though not all,
Here are details of what Altmaier authorized in the consent orders:
Homeowners who get a notice of cancellation or nonrenewal should move quickly to secure coverage with another company, the
Many, if not most, of those customers will end up with little choice but to buy a policy from state-owned
Citizens has been rapidly growing as private-market insurers cancel and decline to renew
Citizens, which expands and contracts as market conditions warrant, is growing by about 5,000 policies a week and could reach 700,000 by the end of the year. In 2018, it had fallen to 452,000 policies.
Handerhan said policyholders who receive notices of cancellation or nonrenewal should contact numerous agents if necessary to find out if another company will insure them at an affordable price. They should settle for Citizens only if they cannot find a viable alternative, he said.
“We are in a good position to handle any policies that come our way,” he said by email. “We have been in ramp-up mode for some time as we respond to market conditions over the past year.”
Ultimately, owners of older homes in
As a result, “owners of older properties are going to have to dig into their pockets and come up to current code” before insurers will accept their business, he said.
“The status of the residential property insurance marketplace in
While the reforms that were passed — and currently await the governor’s signature — are expected to reduce costs for insurers, those reductions won’t become apparent for 12 to 15 months, Handerhan said.
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