Florida-Based Insurance Company Cancels Some 1.1K Mobile Home Polices, Expert Says
American Mobile Insurance Exchange canceled the policies because it is reportedly withdrawing from the Florida market.
Source: 10 Tampa Bay – A ST. Petersburg-company is canceling at least a thousand mobile home policies, according to Mark Friedlander with the insurance information Institute.
In an email to 10 Tampa Bay, Friedlander said the company sent a notice in March to around 1,000 Florida manufactured/mobile home policy holders that would be canceling their policies within 45 days “due to their deteriorating financial position.”
“Impacted policyholders have been placed with either Citizens or a private insurer that writes mobile/manufactured home coverage,” Friedlander stated in the email.
10 Tampa Bay has reached out to the American Mobile Insurance exchange but has not yet heard back.
Another report on the cancellation from Insurance Journal says the company would offer refunds of unearned premiums and subscriber surplus conditions on June 3 to help policy holders placement coverage.
Insurance Journals’ report cites these cancellations from American Mobile Exchange as an indicator of Florida’s mobile home insurance market “falling apart.” The company had been seen as a lifeline for part of the state’s mobile home market, but financial issues within the company might have been building for months, according to Insurance Journal.
In a separate interview with WESH in Orlando,Frielander said despite the challenges of securing insurance for mobile and manufactured homes in Florida, the average rate increases for the standard market are only running under 2%.
“Nine companies have filed for rate increases,” Friedlander told WESH.
In addition, Friedlander told 10 Tampa Bay American Mobile struck a deal with American Traditions Co. in late March to assume about 8.000 additional manufactured/mobile home policies.
“Coverage is continuous for these policyholders under the terms of their existing American Mobile policy,” Friedlander stated in the e-mail.
