One Clear Dot

The home owners insurance market in Florida is a mess – Mess with a big M. Despite special sessions in Tallahassee and laws being passed right and left that are meant to protect home owners in the state, most insurance providers are still finding loopholes that enable them to charge more for insurance policies. Others are simply dropping customers in the state. Daily, I hear about insurance companies appealing to Tallahassee for the right to increase policy prices 40% and more.

It’s insane.

And now Florida is making an example of Allstate.

Allstate was asked to provide documents about its reinsurance program and its relationship with risk modeling companies, insurance trade associations and insurance rating organizations. Instead of complying, the insurance company instead submitted a 51-page letter of objections to the state’s subpoena, calling the state’s request “irrelevant.”

In response, Florida Insurance Commissioner Kevin McCarty suspended Allstate companies from writing new automobile policies in Florida for refusing to comply fully with a subpoena from the state.

Way to make a point, I say.

More and more people are finding that even though home prices are becoming more affordable in Florida, the cost of insuring a home has become prohibitive.

Posted on January 16th, 2008 by onecleardot
Filed under: Finance