The Florida Department of Financial Services has received reports of an unlicensed entity selling bogus homeowners insurance in Florida. Global Insurance Group, headquartered in Aventura, Fla., has been aggressively advertising that it offers the lowest windstorm insurance rates in Florida.
When asked about its licensing status, a company representative reported that it sells coverage through a company named Global Property and Casualty Insurance. Neither entity is either licensed or authorized to sell insurance in Florida.
“Floridians need to be on guard against this kind of activity,” Tom Gallagher, Florida’s CFO said. “Last year’s hurricanes taught us how devastating and expensive property losses can be. It is critical for Floridians to make sure an insurance company is licensed.”
DFS said if a licensed insurer becomes insolvent all outstanding policyholder claims will be paid through the state guarantee fund. However, if a company is not authorized, any losses sustained cannot be recovered from the fund.
To check on the license status of a company or agent, consumers should visit www.fldfs.com, and click on Verify Before You Buy, or call the Department of Financial Services’ Helpline at 1-800-342-2762.
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