We will be very fortunate if this is the only liquidation in the FL HO market this year. Praying this is it because the disruption to the residents is absolutely awful.
The level of empathy in this article for Gulf Stream is gross, and if regulators cared to find out how this atrocity happened, I imagine it would be as catastrophic for Nate.
The state has much to do if the market is to recover. The state could use excess Citizens surplus to provide low interest loans to these teetering carriers. It did work with limited success in the past. Also we have to look at what’s driving these substantial losses. Nobody wants to make the hard decisions unfortunately.
If this is indeed the worst of it we should see multiple carriers entering the market with the rates as high as they are. If we don’t see carrier interest rising in the next 3 to 6 months then Joe is dead wrong.
The problems in the Florida marketplace were the catalyst that made this happen but Gulfstream bears a large responsibility as well. They fell behind other carriers with respect to product design, pricing, and claims handling and really didn’t have enough management talent to avoid this. It’s difficult for some of these small Florida companies to recruit the best and brightest minds, and big or small, these Florida companies have to compete in a tough environment.
Respectfully, Gulfstream’s ownership which was substantially Seibel’s out of Columbia, SC has decades of experience in regional markets. Management wasn’t the issue. They weren’t quick to butcher policies as you point out, but a lot of that falls on not wanting to be in the race to the bottom. Sadly we see how that worked out.
Fortunately I never got involved with Gulfstream. In SE Florida there was only a short window to get on board to get any sort of traction. Ironically I sat that day out at the insurance convention.
Sad too see, but just another testament how tricky Florida is to conduct business. So many factors, but reality is it comes down to pricing as these carriers know up front the litigation costs of doing business, combined with a state that is always at high risk for weather events. Consumers are partly to blame as they just don’t understand that in reality they have historically had very reasonable rates for the area they live in. Some may say a bargain for the risk that carriers take. Carriers have to be allowed to price right, which is much higher then probably what it is now, but can’t do that with the State regulations and consumer push-back that comes with the hint of a rate increase. That is why so many carriers (The Too Big To Fail Carriers) made the decision to pull out of the state. They knew they could not make money with the risk that Florida presents. So it begs the question, if the Too Big To Fail Carriers pull out, how do small, private carriers ever think they can? Crossing your fingers is not a plan.
Here is Reality! I rec’d email from my Ins agent 12 hrs ago “Gulfstream is insolvent, & will be liquidated, your policy will be cancelled in 26 days. Deadline for filing claims was 3 days ago. Questions regarding the insolvency & any unearned premiums,Fl Dept of Financial Serveces. We truly regret this situation. If you want us to find other Ins coverage let us know.”
When I paid yearly premium to Gulfstream in April, was told they were rated A superior, 90 days later they are insolvant & liquidated apparently thru State Regulators. I am 82 and have had a slight stroke but I try to handle things but don’t know here. I would like to get a Citizens Ins Pol thru the state but don’t know how & they don’t answer the phone. If anyone has advice I would be grateful.
Jim, call your agent as there are a few companies that are grabbing GS’s policies and provide basically the same coverage so you don’t have to go through Citizens. Also, the claims deadline is 7/28/2022 so a year from now.
Hi, Jim. Citizens offers policies through a network of certified agents throughout the state of Florida. You can find a list of agents in your area by visiting the Get a Policy page on our website https://www.citizensfla.com/get-a-policy. In the upper right-hand column of the page, enter your zip code and search for local agents. We do not offer policy quotes or estimates online. Our agents are the best source of information due to their familiarity with the area and the type of coverage your property would need. Feel free to reach out to customer.care@citizensfla.com if you have additional questions. Thank you.
Agent called today to tell me the bad news. She offered one option: sign up with the company willing to take my policy for $5,500. I just paid Gulfstream Ins. $4,500 in April. Was told that “someday” I will receive a pro-rated portion of my $4,500 but the agent had no idea when. They expect us to pay $10,000 ($4,500 in April, $5,500 in August) in the course of three months for a year of home insurance? And if there is a hurricane this year, you can bet these insurance companies will be no where to be found.
All this bitching about the carrier and not a single word about the rating agency DEMOTECH that didn’t drop their rating until 30 days prior to the carrier going belly up. State departments of Insurance better be looking into how DEMOTECH rates carriers, especially given they only have 2 ratings, A or failed.
I spent literally hours on the phone with Gulfstream. I had two homes insured with them, right next door to one another. Paid for one roof, refused to pay for the roof next door and also refused to send out their own inspector to verify the need when asked. I had two rooms and a hallway flood due to trees damaging the septic system. They never paid for that even after being sent several estimates of flooring replacement. Took me over two years to get partial payment after speaking to a supervisor who sent me on another errand for another estimate every time I talked to him. I ended up sending 4 roof estimates, which were all inadequate considering the time it took them to pay part of the claim. There’s no way I could replace the roof with what they gave me. By the time I got any money for it, the price had risen more than 30%.
We will be very fortunate if this is the only liquidation in the FL HO market this year. Praying this is it because the disruption to the residents is absolutely awful.
The level of empathy in this article for Gulf Stream is gross, and if regulators cared to find out how this atrocity happened, I imagine it would be as catastrophic for Nate.
The state has much to do if the market is to recover. The state could use excess Citizens surplus to provide low interest loans to these teetering carriers. It did work with limited success in the past. Also we have to look at what’s driving these substantial losses. Nobody wants to make the hard decisions unfortunately.
If this is indeed the worst of it we should see multiple carriers entering the market with the rates as high as they are. If we don’t see carrier interest rising in the next 3 to 6 months then Joe is dead wrong.
The problems in the Florida marketplace were the catalyst that made this happen but Gulfstream bears a large responsibility as well. They fell behind other carriers with respect to product design, pricing, and claims handling and really didn’t have enough management talent to avoid this. It’s difficult for some of these small Florida companies to recruit the best and brightest minds, and big or small, these Florida companies have to compete in a tough environment.
Respectfully, Gulfstream’s ownership which was substantially Seibel’s out of Columbia, SC has decades of experience in regional markets. Management wasn’t the issue. They weren’t quick to butcher policies as you point out, but a lot of that falls on not wanting to be in the race to the bottom. Sadly we see how that worked out.
Fortunately I never got involved with Gulfstream. In SE Florida there was only a short window to get on board to get any sort of traction. Ironically I sat that day out at the insurance convention.
Sad too see, but just another testament how tricky Florida is to conduct business. So many factors, but reality is it comes down to pricing as these carriers know up front the litigation costs of doing business, combined with a state that is always at high risk for weather events. Consumers are partly to blame as they just don’t understand that in reality they have historically had very reasonable rates for the area they live in. Some may say a bargain for the risk that carriers take. Carriers have to be allowed to price right, which is much higher then probably what it is now, but can’t do that with the State regulations and consumer push-back that comes with the hint of a rate increase. That is why so many carriers (The Too Big To Fail Carriers) made the decision to pull out of the state. They knew they could not make money with the risk that Florida presents. So it begs the question, if the Too Big To Fail Carriers pull out, how do small, private carriers ever think they can? Crossing your fingers is not a plan.
Here is Reality! I rec’d email from my Ins agent 12 hrs ago “Gulfstream is insolvent, & will be liquidated, your policy will be cancelled in 26 days. Deadline for filing claims was 3 days ago. Questions regarding the insolvency & any unearned premiums,Fl Dept of Financial Serveces. We truly regret this situation. If you want us to find other Ins coverage let us know.”
When I paid yearly premium to Gulfstream in April, was told they were rated A superior, 90 days later they are insolvant & liquidated apparently thru State Regulators. I am 82 and have had a slight stroke but I try to handle things but don’t know here. I would like to get a Citizens Ins Pol thru the state but don’t know how & they don’t answer the phone. If anyone has advice I would be grateful.
Jim, call your agent as there are a few companies that are grabbing GS’s policies and provide basically the same coverage so you don’t have to go through Citizens. Also, the claims deadline is 7/28/2022 so a year from now.
Here is an FAQ from the state: https://myfloridacfo.com/division/receiver/companies/detail/556
Basically your agent is the best person to move you over to someone else quickly.
Hi, Jim. Citizens offers policies through a network of certified agents throughout the state of Florida. You can find a list of agents in your area by visiting the Get a Policy page on our website https://www.citizensfla.com/get-a-policy. In the upper right-hand column of the page, enter your zip code and search for local agents. We do not offer policy quotes or estimates online. Our agents are the best source of information due to their familiarity with the area and the type of coverage your property would need. Feel free to reach out to customer.care@citizensfla.com if you have additional questions. Thank you.
Agent called today to tell me the bad news. She offered one option: sign up with the company willing to take my policy for $5,500. I just paid Gulfstream Ins. $4,500 in April. Was told that “someday” I will receive a pro-rated portion of my $4,500 but the agent had no idea when. They expect us to pay $10,000 ($4,500 in April, $5,500 in August) in the course of three months for a year of home insurance? And if there is a hurricane this year, you can bet these insurance companies will be no where to be found.
All this bitching about the carrier and not a single word about the rating agency DEMOTECH that didn’t drop their rating until 30 days prior to the carrier going belly up. State departments of Insurance better be looking into how DEMOTECH rates carriers, especially given they only have 2 ratings, A or failed.
HERE”S reality…I still have not been paid my claim for Hurricane Micheal…I am retired, 73 year old woman…any suggestions….\
I spent literally hours on the phone with Gulfstream. I had two homes insured with them, right next door to one another. Paid for one roof, refused to pay for the roof next door and also refused to send out their own inspector to verify the need when asked. I had two rooms and a hallway flood due to trees damaging the septic system. They never paid for that even after being sent several estimates of flooring replacement. Took me over two years to get partial payment after speaking to a supervisor who sent me on another errand for another estimate every time I talked to him. I ended up sending 4 roof estimates, which were all inadequate considering the time it took them to pay part of the claim. There’s no way I could replace the roof with what they gave me. By the time I got any money for it, the price had risen more than 30%.