Demotech rankings company has downgraded St. John’s Insurance coverage Firm, placing hundreds of policyholders out of compliance with their mortgage lender.
St. John’s, the eighth-largest owners’ insurance coverage service within the state, was one in every of greater than a half-dozen different carriers to announce this week they had been suspending new enterprise. Now it seems their estimated 170,000 policyholders must discover a new insurer.
With Florida’s insurance coverage market already hardened, most customers have nowhere to show however the state-backed Residents Property Insurance coverage Firm. As soon as at 420,000 insurance policies, Residents’ coverage rely has grown to 777,000 and is growing by about 5,000 new insurance policies every week.
OIR will determine the ultimate destiny of St. John’s as as to if it’s in the end positioned into receivership.
“The Florida Workplace of Insurance coverage Regulation is working intently with St. Johns Insurance coverage Firm to facilitate choices for customers so that they have steady entry to protection,” an OIR spokesperson mentioned in an e mail to Florida Politics.
The St. Johns downgrade comes as lawmakers are contemplating laws geared toward shoring up the state’s ailing property insurance coverage market.
The Senate (SB 1728) plan hopes to curtail roof litigation by permitting insurers to write down insurance policies that cowl the money worth of older roofs slightly than substitute value. At present, insurers are largely required to write down insurance policies masking substitute value.
The Home, nonetheless, isn’t on board with the plan, which has been publicly criticized by Home Speaker Chris Sprowls.
“I wish to be certain that persons are compensated,” Sprowls instructed reporters on Wednesday. “Should you get a hurricane, and also you’ve acquired a senior citizen on a set earnings, I’m cognizant of the truth that they might not have the ability to go and get an enormous roof. I completely perceive the arguments, so we’ll see how the dialog goes within the subsequent a number of weeks.”
In the meantime, Senate President Wilton Simpson mentioned property insurance coverage stays a prime precedence for his chamber and that if lawmakers don’t go laws this yr, then the Legislature may have “failed our residents.”