Allstate owned 'Castle Key Insurance' to Drop 33,000 Condo Policies in Florida
It's not getting any better unfortunately. Recently we have received this news. “The entire industry is experiencing significant cost pressures,” due to more-frequent storms and higher cost of repairs,...
It's not getting any better unfortunately. Recently we have received this news.
“The entire industry is experiencing significant cost pressures,” due to more-frequent storms and higher cost of repairs, reads the bulletin from Caren Latona, Allstate’s Central East Zone sales director, and Shannon Bauer, Southeast regional sales manager.
Allstate is saying that the renewable policies premiums are not enough to ensure the condo units. This could be based on the lost experience.
The move is another squeeze on Florida condominium owners, which have seen other carriers non-renew, raise premiums, or require more inspection and safety data in the wake of the 2021 collapse of the Champlain Towers South near Miami Beach.
Is Citizens Insurance an answer to this issue?
Unit owners could soon see higher premiums. By moving to Citizens, condo units will now face the added cost of flood insurance. Senate Bill 2A, adopted in the Florida Legislature’s special session in December, now requires all Citizens policyholders to also obtain flood insurance, regardless of elevation.
Allstate's Reported Losses
The news may not be surprising, after Allstate Corp. said last fall that it had incurred a net loss of $694 million for Q3. All of it has raised concerns in the industry that more nonrenewals by Allstate or other carriers may be coming in 2023.
We are still in for premium hikes :)
Just before the nonrenewal announcement, Castle Key Indemnity Insurance also filed for 14.9% rate increase for its condominium program.
