WEST PALM BEACH, Fla. — WPTV is tracking a new development regarding homeowners' insurance in Florida.
Florida lawmakers this legislative session managed to pass a bill, HB 1549, that will allow insurance agents to secure homeowners policies with surplus carriers more easily by dropping the requirement of having to secure three denials from admitted carriers.
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"(It takes) away the diligent effort search, helps agents place people with coverage a lot quicker than they could," Robert Norberg of Arden Insurance in Lantana said.
Surplus carriers are generally based out of state or out of the country and are not as tightly regulated as admitted or traditional insurance companies.
"Most surplus carriers are A-plus rated by AM Best, so they have good financial backing," Norberg said. "The only downside is they don't have to follow the same rules, so for example, if they want to discontinue a program, raise rates and fluctuate with the marketplace, they can do that."
Surplus lines also don't have the financial backing of the state's insurance guarantee fund if they go bankrupt.
However, surplus lines exist to offer insurance where homeowners can't find it elsewhere, including Citizens Insurance.
"Let's say somebody has an older damaged roof or something like that, a surplus carrier might take that on and just put in exclusions to the policy, whereas an admitted carrier cannot," Norberg said.
The bill allowing the easier switch of surplus lines now needs the signature of Gov. Ron DeSantis to become law.
Matt Sczesny is determined every day to help you find solutions in Florida's coverage collapse. If you have a question or comment on homeowners insurance, you can reach out to him any time.
