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Are Insurance Companies Only Insuring You As Long As Nothing Happens? Insurers Go Missing After Catastrophic Losses

hurricane damage to homes.jpgInsurance companies often advertise how easy it is to become an insurance company’s customer. But they seldom, if ever, advertise how difficult it is to get an insurance company to pay for a claim, especially if the claim is after a catastrophic loss such as say a Hurricane.

Insurance companies have significantly and methodically decreased their financial responsibility for weather catastrophes like hurricanes and floods in recent years. Indeed, and after an extraordinary year last year for natural disasters, many insurance companies took steps to leave weather challenged states like Florida.

For instance, Allstate informed many of its North Carolina policy holders that would not renew homeowner policies that were not bundled with auto policies. Alfa Mutual Group announced that it would not renew 73,000 Alabama policy holders after tornadoes caused $11 billion dollars of property damage in Alabama last year.

Yet Florida is probably in the worst shape of any state in the country as it is the midst of an on going insurance crises in light of the fact that insurers have been dropping coverage since Hurricane Andrew in 1992. As a result, Florida’s premiums average $1,460 per home. That trails only the state of Texas for the average cost of insurance premiums. As a result, the state backed Citiznes Insurance Company has had to step in to cover some 1.5 million property via its publicly funded insurance company as insurers drop more and more homes each and every year. State Farm, for example, stopped writing new homeowner policies in Florida back in 2007.

Today, insurance companies are also offering less insurance coverage for more money. In other words, many policy holders are paying more money for less coverage. While rates have been increasing dramatically, coverages have been hallowed out.

With hurricane season upon us, it is important to check the financial strength of your property insurer. The reason for that is because a major storm could wipe out more than your home – it could wipe out an insurance company too. Not only should you check the financial strength of your insurance company, but you should also check, and understand, the scope of coverages you have purchased.
If you are in doubt regarding your legal rights under the insurance policy, or you are in need of assistance with your insurance claim, please feel free to call us today to discuss your claim.

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