4th Florida property insurance company has gone bankrupt

Nearly 80,000 Florida homeowners will have to find new insurance after Southern Fidelity declared bankruptcy. The Tallahassee-based company is the fourth insurer to declare insolvency since February.

[@ceegee924]

Corruption

[@jametoriaburton8392]

This is the first I've heard that Southern Fidelity is dropping it's insurance program. When did they plan to inform the policyholders?!

[@michellmorales6393]

We pay anywhere between $6000 to $10,000 in insurance a year plus most of us have a $5000 deductible. Most of us don’t put claims through our insurance. How is 1 hurricane going to wipe our progress out in Florida?

[@jasoncrandall73]

When/if Citizens runs a shortfall then policy assessments are added on all Florida Homeowner policies.

[@Jab_Reel]

Good story though, how do insurance companies go bankrupt?

[@paytonpeta1336]

I've heard there has been a ton of insurance fraud. At one point insurance companies wouldn't pay out when they should have. The government put a bunch of laws in place to force them to pay out. Now fraud is destroying the system.

[@jasoncrandall73]

Take for instance the regulation that deals with roofs.
If more than 25% is deemed damaged then the whole roof needs to be replaced.
A 3rd party representation clause means a roofing company & their lawyers can represent you in place of you (homeowner signs a form).
If a lawsuit is filed then the roofing company's lawyers is entitled to x times higher fees.
Take newer home prices of $300k± & the reinsurance market premiums that insurance companies have to pay.

[@dccoaching2867]

scammed out of business

[@Jab_Reel]

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