Evolve Insurance Agency has learned that on May 12, 2020, the Florida Office of Insurance Regulation ("OFFICE") issued a Capitol Preferred consent order, outlining a plan to cancel over 23,000 policies with a 45-day notice. As of May 3, 2020, Capitol Preferred Insurance Company reported having over 108,000 policies in force, meaning this will result in the cancellation of over 20% of their active policies. The polices to be cancelled primarily consist of those that were acquired by Capitol Preferred during a merger with another domestic property and casualty insurer, Southern Fidelity Insurance Company.
Capitol Preferred Insurance Company is a domestic property and casualty insurer authorized to transact business in the state of Florida. They offer homeowners, condo unit owners, dwelling fire (rental homes), and tenants (renters) insurance policies. Capitol Preferred provided documentation to the OFFICE which reflects that without a reduction to the number of policies in force, the cost of catastrophic reinsurance for the 2020 Hurricane Season, will materially increase. Catastrophe reinsurance is essential in the Florida property insurance market to provide insurers with enhanced ability to pay claims in the event of a catastrophic event.
If you are currently insured with Capitol Preferred Insurance Company, and your policy is one designated to be cancelled, you will soon receive a notice of cancellation by U.S. Mail. Capitol Preferred was ordered to provide at least 45 days’ notice of cancellation, so although you have time, it's important to act quickly. Refunds owed to policyholders for cancelled policies are to be returned to the policyholder no later than June 15, 2020.
If you have further questions regarding this, and how it may pertain to your policy, we suggest you contact Capitol Preferred Insurance Company or your agent directly. Please refer to the numbers posted below to reach Capitol Preferred directly:
Capitol Preferred Insurance Company Customer Service: 800-734-4749
Capitol Preferred Insurance Company Dedicated Cancellation Hotline: 833-319-0615
Current clients of Evolve Insurance: 941-244-2760 (Looking for a new quote? We'd love to help!)
This is never good news for a Florida resident to hear right at the start of Hurricane Season. Fortunately, our agency is prepared and can offer you a quote to replace your current coverage issued by Capitol Preferred Insurance Company. Our agency has relationships with multiple insurance carriers who are financially stable and ready to provide you with the peace of mind you need and deserve. To stay covered and protected, start by visiting us online at evolveins.com or call our office at 941-244-2760 and ask to speak with an agent today.
This information was obtained directly from the Florida Office of Insurance Regulation (FL OIR), OIR Order 263348-20-CO. https://floir.com