Homeowners Choice, Inc. reports it has been selected as the replacement home insurer for policyholders of American Keystone Insurance Co., which was placed into receivership earlier this month.
All of American Keystone’s approximately 5,500 homeowners’ policies are scheduled for cancellation at 11:59 p.m. on Nov. 8, 2009.
The Department of Financial Services has authorized Homeowners Choice to offer replacement coverage to those policyholders losing coverage, according to the insurer.
Homeowners Choice said it will pay commissions to the department for replacement policies that remain active for one year. American Keystone policyholders and their agents are free to seek out other insurance companies.
Homeowners Choice said it it will begin notifying American Keystone’s policyholders and their agents immediately.
The company also promised competitive pricing on any replacement policies.
“Our replacement quote will be lower than the rate charged by Citizens for similar coverage,” said F.X. McCahill, chief executive officer of Homeowners Choice. “While it is unfortunate that American Keystone policyholders are in the position they are, we want to offer them a sound alternative.”
American Keystone’s policyholders will be entitled refunds for the unused portions of their policies. The refunds will be paid by the Florida Insurance Guaranty Association after the receiver completes it processing of the policy records. A $100 statutory deductible will be taken from the amount owed.
Homeowners Choice provides property/ casualty homeowners’ insurance, condominium owners’ insurance and tenants’ insurance solely to Florida property owners. Founded in 2006, it has about 60,000 policyholders and writes $100 million in premiums.
Source: Homeowners Choice, Inc.
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