United P&C Receivership
Homeowners insurance companies in Florida are facing enormous financial pressure, and several have gone out of business in the last few years. United P&C was placed into receivership in 2021. Since then, the receiver has collaborated with government organizations to wind down the company and make sure policyholders remained protected.
Why Was the Homeowners Insurance Company United P&C Placed Into Receivership?
The United Property & Casualty Insurance Company was placed into receivership due to financial issues. The company could no longer meet the minimum capital requirements set by the state of Florida, so the Florida Department of Financial Services stepped in. Later, it was shown that United P&C had losses of over $35 million every year since 2017.
This isn’t the only Florida insurance company to go out of business in the last few years. Some others are FedNat Insurance Company, Lighthouse Property Insurance Corporation, and St. Johns Insurance Company. There are several reasons why so many insurers are struggling. In Florida, the number of claims is much higher than in other states due to the many natural disasters and problems with insurance fraud.
What Is Receivership?
A receivership is a tool that makes it easier for creditors to recover the money when a company has become insolvent. An independent receiver manages the company’s business and aims to return it to profitability. In the case of United P&C, the process was very complex because it involved many legal and financial issues.
The receiver sold off UPC’s assets and wound down the company. They also collaborated with the Florida Insurance Guaranty Association to make sure policyholders received the coverage they paid for. The Tampa-based insurance company Slide has now taken over the exclusive renewal rights of 91,400 of UPC’s home insurance policies.
Many Florida home insurance companies are struggling, but policyholders are protected, and they are unlikely to lose their coverage if their provider goes out of business. Send us a message at DTRT Insurance to learn more about home insurance. We can help you find reasonable quotes.
