The inevitability of storms in Florida is a well-known fact.
Policyholders of American Mobile Insurance Exchange, a newcomer to Florida’s insurance market, received some unsettling news recently.
“They were going to be canceling approximately 1,200 policies, mobile or manufactured home policies, here in Florida because they’re withdrawing from the Florida market due to their financial condition,” said Mark Friedlander with the Insurance Information Institute.
Friedlander said these policyholders should have found new coverage by now. The likely provider is Citizens Property Insurance Corporation due to the high risk associated with their homes.
“Manufactured and mobile homes are considered very high risk; they are prone to catastrophic damage when it comes to wind events like hurricanes and tornadoes,” Friedlander explained.
Despite the challenges of securing insurance for mobile and manufactured homes, Friedlander said Florida’s insurance landscape has significantly improved.
“The average rate increases we’re seeing for the standard market are running under 2% in Florida; nine companies have filed for rate decreases,” Friedlander noted.
He attributes this improvement to changes in legislation. These changes have bolstered the overall health of the insurance industry in the Sunshine State.
“We’ve had almost 10 straight years of underwriting losses. The insurance business is in its best financial position that it’s been in nearly a decade here in Florida,” Friedlander said.
He reassures policyholders that they should feel confident in their coverage. This assurance is important, especially in the face of potential storms.
“You can rest assured if you suffer a loss during hurricane season, your insurer will pay your claim if it’s covered under the provisions of your policy,” Friedlander said.