Florida personal lines coverage reaches crisis levels — Part 2

Part of Florida’s Senate Bill 76, which went into effect July 1, 2021, prevents contractors, public adjusters and companies from using predatory advertisements that encourage Florida residents to make insurance claims for roof damage and imposes a fine of up to $10,000 when companies violate the law. (Credit: Devon Yu/Adobe Stock)

Editor’s note: Part one of “Florida personal lines coverage reaches crisis levels” was featured on PropertyCasualty360.com Tuesday, December 28, 2021. 

As a result of multiple forms of losses, Florida agents currently find themselves with fewer options when placing residential property coverage. A few major carriers like CNA, Travelers and Chubb still write homeowners, but restrictions are tightening around wind, and a property policy in Florida without wind coverage is next to useless.

Much of the property cover to be found these days is secured through specialty/excess & surplus insurers like Scottsdale (who recently took a rate increase ranging from 12% to 70%), and those have to be accessed through wholesale brokers such as Amwins, Johnson & Johnson, RT Specialty, RPS and XS Brokers. By the time those brokers’ own fees and commissions (around 5%) are factored in, property insurance yields less and less profit for local agents, even if the premiums are high.