Is it true you cannot get homeowners insurance in Florida if you have filed bankrupcy?
Friday, November 28th, 2008 at
6:04 pm
spie2 asked:
Allstate has just cancelled my mothers homeowners policy and she called another company for a quote. When they found out she had filed BK they told no insurance company in FL would insure her. Is this true???
Allstate has just cancelled my mothers homeowners policy and she called another company for a quote. When they found out she had filed BK they told no insurance company in FL would insure her. Is this true???
Tagged with: Allstate • Insurance • Insurance Company
Filed under: Homeowners Insurance
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She’ll have to go to the Florida State Fair Plan – no voluntary company will take someone with a bankruptcy, except Foremost. And I don’t think Foremost is writing new business in FL right now. So, she’ll have to go to an independent agent like and tell them she needs homeowners, but has a bankruptcy. And she’ll have to pay the whole year in full. The state fund won’t give her “credit” (which is what installment payments are).
It’s important to know WHY Allstate cancelled her insurance, though, because if there’s ANOTHER issue (like unrepaired damages) she’s still going to have to get that fixed with the FAIR plan – they’ll give her 30 days.
It probably has less to do with the bankruptcy and more to do with the fact nearly all major insurance companies are pulling out of Florida. Bankruptcy or not, it is very difficult to find insurance in Florida these days.
Thank your Governor, Charlie Crist for that. He scared all the major private companies away and is now pushing the Citizen’s Property insurance (Florida’s state run insurance) to homeowners. The problem is it doesn’t have the financial strength to handle any catastrophes. Ultimately it will fall back on the Homeowner’s again in the form of a bail out tax, if another hurricane were to hit Florida. I would be very worried if I were a homeowner in Florida right now.