United Property & Casualty Insurance ran into difficulties after Hurricane Ian and moved into receivership

TAMPA, Florida. Thousands more homeowners in Florida will soon be left without property insurance.

Last week, the Florida Insurance Regulatory Authority decided to transfer United Property & Casualty Insurance Co. competitive management. This came after an insurance company was declared insolvent due to higher-than-expected losses from Hurricane Yang.

“UPC failed because of the high number of claims related to Hurricane Yang, combined with the fact that they did not have an adequate level of reinsurance coverage that insurers normally need to ensure they do not fail after a major loss such as like a hurricane,” said Mark Friedlander of the Insurance Information Institute.

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However, on February 1, Slide Insurance Co. purchased over 72,000 United policies from Tampa; it is not liable for claims filed before February 1st.

Friedlander said the Florida Insurance Guarantee Association would step in to help pay for United’s claims. The non-profit organization was formed to deal with the claims of insolvent companies and may charge surcharges on insurance premiums to cover additional expenses.

The decision to hand over bankruptcy to UPC was another blow to Florida’s property insurance market.

“Now with UPC, that’s 10 Florida insurance companies that have failed since the start of 2021,” Friedlander said.

State-supported insurance company of last resort Citizens Property Insurance Corp. provided policies to thousands of homeowners who lost insurance coverage due to last year’s insolvency.

“The best advice we can give to United policyholders right now is to contact your agent. Your agent will be your assistant when you make the transition. They are the ones that are best suited, best able to meet your individual needs,” said Michael Peltier of Citizens Property Insurance Corp.

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