Florida Homeowners Insurance Crisis

Homeowners Insurance Glossary

The following definitions came from HAC

Unregulated companies / surplus lines carriers:

Even thought Florida has an Office of Insurance Regulation, which reviews rates for insurance companies, some companies do not have to follow those mandates and can charge you whatever they want! These are Surplus Lines Carriers.

PUP Companies:

These are subsidiaries of the larger national companies, or “Florida only companies. The State Farm policy you had for years “up north”, is State Farm of Florida here. This allows the national company to form Florida only subsidiaries and charge higher rates, supposedly based on losses in Florida, while funneling money off to the parent company to show losses in Florida.

Take-out companies:

There was a practice of companies being allowed to take policies from Citizens and then they could charge higher rates and get paid from Citizens for taking those policies as long as they kept them for three years! See our Take out companies page.