After a brief stint of being put on administrative supervision by Florida's Office of Insurance Regulation (FLOIR), Gulfstream Property & Casualty Insurance Company announced this month that the temporary opportunity has been taken away. In a statement released by the company itself, it explained:
“...The move was necessary as we had recently been in active negotiations for a recapitalization of our company, and late last week that opportunity suddenly went away...In the interest of protecting policyholders, and if you have not done so already, we suggest that you immediately begin seeking coverage from alternate carriers for any homeowners related business you have with Gulfstream.”
Like many businesses, the Sarasota-based company had struggled during the pandemic challenges of 2020. It struggled with poor credit ratings and with maintaining a minimum surplus of $10 million. Without being able to keep the minimum funds necessary in order to cover the claims of policyholders, the company was put on administrative supervision with limitations in place. During this time, the company was not allowed to write new policies, and they also had to be transparent about a situation that is normally pretty confidential. Considering the dire circumstances, the FLOIR felt it was necessary for the public to have this information readily available. The administrative supervision period was supposed to last for 90 days, but Gulfstream Property & Casualty Insurance Company did not make it to even the halfway point of that timeline. The duration could have been extended if the company could have proven a valid effort to “resolve issues with its financial condition,” but that has not been the case. Reports show that Gulfstream Property & Casualty Insurance Company was approved to drop 50,000 policies last month, drop over 20,000 condo and tenant policies, and it reported a $35 million loss in underwriting for 2020. Unfortunately, even the loss of policies was not enough to level out the financial loss the company was trying to bounce back from after last year.
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Dealing with homeowner's policies can be overwhelming. If you have questions about covering your needs after your Gulfstream policy, contact us today at Keller, Melchiorre & Walsh. Our experience is to your benefit, and we are ready to share our expertise with you. Give us a call today so that we can help you create a plan that will save your family time, money, and unnecessary stress in the long run.