As the list of property insurance companies declared insolvent in the state of Florida continues to grow, so to do the questions and concerns of the thousands of property owners affected. Many policyholders who filed claims following damage from Hurricane Ian or who hadn’t managed to file their claim yet are left wondering what’s going on and what they need to do.
Here’s what you need to know:
What Exactly is Happening?
In short: Insurance carriers are running out of reserves in the wake of natural disaster-related claims.
This is a nationwide issue, but no state is feeling the pinch as acutely as Florida where more than 15 property insurers have gone insolvent since 2020. Industry experts cite a variety of reasons for this, including:
- Frequent hurricanes
- Lack of reinsurance support
- Bad risk management
- Excessive litigation
- Fake claims
What the Florida Government is Doing
In 1970, the Florida Legislature created the Florida Insurance Guaranty Association (FIGA). FIGA is a nonprofit corporation that establishes and maintains a service-oriented operation for processing covered claims of insolvent members. FIGA is funded by three main sources: estate distributions which are the liquidated assets of the insolvent insurer, investment income, and assessments levied on insurers based on the dollar value of the policies they have underwritten. When a Florida insurance agency goes bankrupt, FIGA is called upon to protect policyholders by paying for their covered claims.
How Does it Work?
While the details of the process are more complicated and there are certainly more hoops to jump through than this simple three-step process would indicate, the general process for FIGA is:
- The state court enters an order of liquidation that the insurance company is bankrupt.
- The claims of the insurance company are transferred to FIGA.
- FIGA makes payments on covered claims.
What It Means for Property Owners
If FIGA will be paying out claims, what’s the problem?
Well, there are a few:
FIGA Claim Limits
FIGA has claim limits that often do not match the claim limits from your original insurer. This means that, although your claim will be paid out, it will likely be less than the original amount – sometimes at only around 70% of the original claim!
Payment Delays
FIGA claims that claim payment delays are somewhat common, but usually not for more than one to two months. That may have been true at one time, but the influx of insolvencies combined with the sheer number of claims from recent storms has shown a 2+ year wait for claim processing.
More information about FIGA and their policies can be found HERE.
MHI Roofing Has Options for You
If you feel like 2+ years is an absurdly long time to live with a failing roof over your head, we have news for you:
YOU’RE RIGHT.
Fortunately, MHI Roofing has options that homeowners in Cape Coral and the surrounding areas can count on. Waiting around for FIGA to pay out your claim for two years is just not feasible – and that’s assuming they will approve your claim in the first place.
Financing with MHI Roofing is Your Best Choice
At MHI Roofing we offer a variety of reliable financing options. With interest rates as low as 5.99% and no money down options, you can easily apply on our website to find the perfect solution for your needs. Some of your options with financing include:
Taking out a loan for the full cost of your unpaid roof replacement claim.
This will be your most expedient option to get your roof completely taken care of and have the peace of mind that your home is completely safe and backed by MHI’s excellent warranties. If and when FIGA finally pays out your claim, you can use the funds to repay the loan.
Taking out a loan to make temporary repairs.
If the cost of a full roof replacement is too rich for your taste in terms of loans, you have other options. We can assess your property and determine what temporary repairs or rejuvenation services are needed for you to bide your time until your claim is processed. You can apply for our simple financing to pay for these repairs temporarily to tide you over until you can get your roof replaced completely.
Have you been impacted by the growing number of insurance agency insolvencies in Florida? Don’t wait until it’s too late – contact MHI Roofing today to learn more about our roof repair and replacement services and found out how our straightforward financing options can help you get the roofing service you need even after your insurance failed you.