Some 32,000 Florida residents could be left without property insurance within the next 30 days, after reports suggest that regional insurer Gulfstream has decided to cancel its coverage at short notice.
The beleaguered insurer was ordered to enter liquidation by a Florida court last month following a period of administrative supervision.
And now, homeowners in Northwest Florida have received notices saying their insurance will be withdrawn this month, according to reports from WEAR-TV, an affiliate of ABC.
It’s thought that Gulfstream simply cannot afford to pay their unpaid claims along with new incoming weather claims and litigation involving lawsuits, which has been a longstanding issue for insurers in Florida.
Thousands of former customers will now be left scrambling to find new property insurance right at the height of hurricane season. And this is in a year when US P&C insurers have already been bracing for above-average storm activity.
Florida Insurance Guarantee Association Executive Director Thomas Streukens has also suggested that Gulfstream could be leaving the state of Florida with between $60 million and $65 million in unpaid claims and premium refunds.
Formed in 2004, Gulfstream primarily operated in Florida but also once sold policies in Louisiana, Alabama, Mississippi, Texas and South Carolina.