Don’t be alarmed…The Dakkak Insurance agency understands that you have concerns about the recent article in the Sarasota Herald Tribune regarding the Florida Homeowner Insurance Companies at Risk.
The fact is that we do have an insurance crisis in Florida. Regardless of which company insures your home, the company is required to have the proper amount of reinsurance. All the companies that Allstate allows our agency to represent are admitted carriers by the State of Florida, which means they are backed by the State Cat Fund. In evaluating the “how risky is your insurer?” chart that was in the paper, the majority of the companies we represent are far out of the trouble zone.
In the event that Florida has a major hurricane and the insurance company isn’t able to pay all of the claims due to insolvency, the State of Florida has the authority to replenish the CAT Fund even if they have to issue and sell bonds to secure the money needed to pay those claims. In addition the State can assess all policies not just homeowners to supplement the CAT Fund. Notice on your homeowner’s policy there is a charge specific to Florida Hurricane Catastrophe Fund Assessment. You may even notice an assessment from Citizens on your policy from 2006 to help build back up the reserve.
What happens if an insurance company goes out of business? Normally another carrier will purchase the book of business and seamlessly take over. However if that doesn’t happen, then historically all the policies are then assumed by Citizens Insurance Company – the state agency set up to cover homes without an insurance company.
But rest assured you will always have coverage and the ability to submit and expect claims to be paid regardless of the insurance company.
Dakkak Insurance 