Another Insurer Goes Down in Florida

[marindependent]

FedNat Holding Co., a Florida-based homeowners insurance company, filed for bankruptcy after an increase in severe weather events in the state weighed on its balance sheet.

The company filed for Chapter 11 bankruptcy in Fort Lauderdale on Sunday, court papers show. FedNat listed $33.8 million of assets and $171 million of debts in its bankruptcy petition.

FedNat has racked up losses in recent years in part because more big storms hit coastal areas of the southeastern US, where the company operates. It has also suffered from the deluge of claims litigation dogging other small Florida insurers.

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[somarco]

Serious question . . . how long before HO in FLA becomes a federal program like flood insurance?

 

[Policy Monkey]

This has been a long time coming. FedNat cancelled around 65k policies earlier this year, and sent the rest of their book to their sister company, Monarch National. Now they are shutting down the FedNat "shell".

 

[Policy Monkey]

Serious question . . . how long before HO in FLA becomes a federal program like flood insurance?

I have long thought the Hurricane coverage should be federally backed, but I'm not aware of any plans for that.