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What to Do When Your Insurance Agency Drops You in Florida

Aug 18, 2023

Having a homeowners policy is required for those with mortgages, but even without a mortgage, having a homeowners insurance policy is the best way to protect your largest investment. Throughout the state of Florida, increasing storm frequency and severity make it essential to have insurance coverage in the event of a hurricane, tropical storm, or significant weather event.

As a leading insurance agency in Florida, Del Toro Insurance is here to help our existing customers and those who are dealing with unexpected losses in coverage. With Farmers Insurance announcing they are pulling out of state, over 100,000 homeowners are scrambling to find affordable coverage.

Knowing what to do if your coverage is dropped is essential in finding alternative insurance that provides the same level of security and protection in the event of damage to your home and possessions.

Know the Reason

In general, insurance companies can cancel a homeowners’ insurance coverage if the homeowner fails to follow the terms of the policy. The most common issue in this category is if the homeowner fails to make a payment on the policy and does not catch up on the payment within thirty days.

Instances, where the homeowner files a fraudulent claim or inaccurately provides information for policy approval, can also result in the insurance agency canceling the coverage.

In some situations, the insurance company may require a home inspection to provide coverage. The policy can be canceled if the homeowner does not make the required improvements or repairs.

Other reasons for the cancellation of the policy have nothing to do with the homeowner. In these circumstances, the insurance agency or the state may make the decision to cancel the policy, even if the homeowner is current on payments and has done nothing wrong.

Insurance Company Cancellations

Many people throughout our service areas of Hialeah Gardens, Margate, Homestead, Palmetto Bay, Cutler Bay, Hialeah Gardens, North Miami Beach, Coral Gables, Hialeah, Naples, and Miami, FL, are facing insurance cancellation.

These individuals were insured by various providers that are no longer writing policies in Florida. These companies, including Farmers Insurance, serve notice they are pulling out of the state, and they must provide their policyholders with 120 days to find new coverage.

There are also fourteen insurance companies in liquidation in the state, which further narrows the market for those looking for replacement insurance policies. These companies are required to provide written notice to policyholders.

Steps to Take

If you receive a cancellation or non-renewal notice, start by shopping the various insurance agencies and getting quotes for coverage. It is also helpful to have inspections on the property, including a four-point inspection and a wind mitigation inspection. A wind mitigation inspection is good for five years, and the inspection of the roof, plumbing, electrical, and HVAC system (four-point) is good for one year.

In the event you cannot find affordable insurance coverage after being dropped, you may qualify for Citizens insurance, although that may not be the best option for long-term coverage.

Let the team at Del Toro Insurance help you find the right homeowners’ insurance for your needs. Reach us online or call us at (305) 335-8676 to get started. We serve homeowners throughout Hialeah Gardens, Margate, Homestead, Palmetto Bay, Cutler Bay, Hialeah Gardens, North Miami Beach, Coral Gables, Hialeah, Naples, and Miami, FL.

FAQs

What are the common reasons why insurance agencies drop policyholders in Florida?

The most common reasons are missed premium payments, fraudulent claims or application information, and failure to make necessary repairs to a property. In the last few years, insurance companies pulling out of Florida have also become a reality for many homeowners.

Are there any steps I can take to prevent being dropped by my insurance agency in Florida?

Ensure your premiums are paid in full and on time and consider hurricane mitigation options like hurricane clips and storm shutters as a way to keep and reduce the costs of the policy.

Are insurance agencies legally allowed to drop policyholders in Florida?

Yes, under specific conditions. The insurance company must provide advanced written notice to the policyholder if they are dropped from coverage.

Will being dropped by my insurance agency affect my ability to get coverage with another company in Florida?

The specific reasons for the drop in coverage will have a different impact on the ability to get new coverage. Talk to an insurance agent at Del Toro Insurance for the specifics of your coverage options.

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