Nationwide Dropping 35,000 Florida Homes
In August, Nationwide Insurance Co. said it would no longer sell Florida home insurance. Most recently, the company has decided to drop 35,000 homeowner policies within the state. The Florida homes being particularly hard hit are condominiums, apartments, rental properties and mobile homes, which are being discontinued completely "statewide to lessen exposure to storm damage."
Although the state´s number four insurer made this decision before Katrina hit, Nationwide explained that such measures were being taken "for fear of massive financial loses from future hurricanes."
Apparently, receiving permission in July to increase premiums 21 percent was not enough of an incentive to keeping Florida homes insured. Of course, the company had requested a 28 percent hike.
The Florida home policy dropping will begin next March and will continue through 2006 until the company is left with only 240,000 home policies. Those losing their insurance will probably have to turn to Citizen´s Property Insurance Corp., "the states insurer of last resort and by law, the most expensive."
Although the state´s number four insurer made this decision before Katrina hit, Nationwide explained that such measures were being taken "for fear of massive financial loses from future hurricanes."
Apparently, receiving permission in July to increase premiums 21 percent was not enough of an incentive to keeping Florida homes insured. Of course, the company had requested a 28 percent hike.
The Florida home policy dropping will begin next March and will continue through 2006 until the company is left with only 240,000 home policies. Those losing their insurance will probably have to turn to Citizen´s Property Insurance Corp., "the states insurer of last resort and by law, the most expensive."
