2 Insurers Stop Writing Policies As Storm Nears
Published: Aug 29, 2006
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TAMPA - Residential real estate closings throughout Florida could be disrupted over the next several days as the two largest homeowner insurers suspend writing policies with the threat of Ernesto making landfall in Florida.
Citizens Property Insurance Corp. and State Farm Florida Insurance Co. say they won't issue policies in the Tampa Bay area or anywhere in Florida until the storm is over - even though storm warnings Monday had focused on South Florida.
The companies are the No. 1 and No. 2 insurers in the state, controlling more than a third of the market.
For State Farm, the policy is new this hurricane season.
During a storm, agents and policyholders may be confused about where policies may be written unless the company instituted a statewide ban on new business, said spokesman Chris Neal.
Some insurers were still writing new policies outside South Florida, said Sam Miller, executive vice president of the Florida Insurance Council.
But the actions by Citizens alone, one of the few insurers actively writing throughout the state even when storms aren't brewing off Florida's coast, will in effect stop many home closings until the storm is over.
Some companies also were restricting the sale of auto insurance policies, though industry experts expected most insurers to write full coverage in the Tampa Bay area Monday.
State Farm, Florida's largest auto insurer, is not selling optional comprehensive coverage in South Florida and along portions of the Atlantic Coast while storm warnings are in effect, Neal said.
The coverage covers cars from hurricane damage.
Reporter Randy Diamond can be reached at (813) 259-8144 or
