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Why Is My Southern Fidelity Insurance Policy Being Canceled?

Southern Fidelity Property & Casualty Insurance Company is canceling 27,500 policies.

If you’re among them, don’t worry! This doesn’t mean it was your fault or that you have to go without insurance. HLI can have a replacement policy for you within 10 days!

First, a global pandemic. Now your home insurance is being canceled, too? What gives?

Yep. As if COVID-19 wasn’t bad enough, you’ve recently received a notice that your homeowners insurance policy is going to be canceled…and you only have 45 days to find a new one!

As a result, you probably have a lot of questions: Was it something I did? Did I have too many claims last year? Forget to pay my premium? Can I find another insurance policy in time?

Although this is a scary situation (in an already terrifying time), Harry Levine Insurance has answers for you!

 

Why is my Southern Fidelity Insurance policy being canceled?

Last February, Southern Fidelity P&C merged with Capitol Preferred Insurance Company in an attempt to bolster financial strength.

Unfortunately, however, that goal of the merger failed and the Southern Fidelity P&C legacy business has to be cast out for Capitol Preferred to continue on.

This effects Homeowners Insurance (HO3) and Condo Unit Owners (HO6) policies with Southern Fidelity Property & Casualty. Policies originally purchased through Capitol Preferred remain unaffected.

 

It’s not your fault!

If you’ve been holding your breath, wondering if your insurance score is going to plummet because of this, relax. These cancellations have nothing to do with you or any other individual customer.

Rather, it’s due to overall portfolio performance. Capitol Preferred has reported losses of more than $45 million since 2017, which the Florida Office of Insurance Regulation has found to be unsustainable (especially in light of the upcoming 2020 Hurricane Season) unless drastic action is taken.

Such action took the form of a Consent Order filed on May 12, 2020 to cancel 27,500 policies that were originally issued by Southern Fidelity Property & Casualty.

If you’re interested, you can read the full Consent Order here: Capitol_Preferred_Insurance_Company__Inc__Consent_Order_263348-20

 

What do I do now?

According to the Consent Order filed by the Florida Office of Insurance Regulation, your insurance carrier only needs to give you a 45-day notice that they are canceling your policy.

Living without homeowners insurance is a frightening prospect—one that you don’t have to face!

Your best course of action at this point is to contact your insurance agent to begin the process of collecting quotes for a replacement policy. If you don’t yet have an agent, we would advise you to contact a local independent insurance agent as soon as possible.

The beauty of an independent agent is that they can quickly and easily collect multiple replacement options to fit your risk profile and your budget. If you’ve never worked through an independent insurance agent before, you might be surprised at the level of service, coverage, and overall value you receive.

Remember, 45 days is the amount of time left until your current coverage runs out. It is not your final opportunity for calling an insurance agent. By the time your policy with Southern Fidelity expires, you should already have coverage through another policy.

 

Will I receive a refund?

If your policy renewal period was still some months away, you will be entitled to a refund for coverage that you paid for but will not receive.

Southern Fidelity has advised that refunds will be issued by June 15, which is 14 days prior to the official June 29 cancellation date. These refunds will be issued back to their original source, whether that’s your escrow account or your bank account.

 

Not a Part of the Harry Levine Insurance Client Family Yet?  No Problem!

The events of the first half of 2020 have been unprecedented, to say the least. But here at Harry Levine Insurance, we want Central Florida residents to know that we are here for them—whether they’re our current clients or not.

And if you are one of the 27,500 households affected by this Consent Order, we’re here for you too. In fact, we expect to have replacement options ready to present and execute within 10 days!

Harry Levine Insurance has been providing Florida residents with unparalleled coverage and customer service for the past 35 years, and we have established a reputation as a pillar of the community. HLI was even named “2013 Business of the Year” by the Dr. Phillips Chamber of Commerce.

In short, we’re not just another insurance agency, we’re your neighbors.

Whether you’re a former Southern Fidelity customer or just want to take a look at your insurance options, we’d love to meet you. Give us a call or fill out the quote form on our website to get started!

 

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