SARASOTA, Fla. — A Sarasota woman is on the hunt for new condo insurance after her policy was not renewed.
According to a recent letter of non-renewal from her current insurer, Castle Key, her coverage is being canceled because "the dwelling was built prior to 2002 and is located within three miles of the coastline."
But she said the baffling part is that the insurance company knew the age and location of her condo building when she signed with them three years ago.
So why cut her loose now?
We took her concerns to Lisa Miller—Florida's former Deputy Insurance Commissioner and a current insurance consultant—who told us there are typically a few reasons for a change like this.
"The first is the weather. Look no further than what happened in this state on January 9. We had 100 mile-an-hour winds in January in Florida, unheard of. Second is inflation. Look at the cost of a gallon of milk three years ago, and I don't need to say anything else to what it costs today," she said, "Third is litigation. Florida's done a lot of work in trying to stop what the governor called 'billboard lawyers.' We have a long way to go. And lastly, it's the cost of reinsurance."
Miller said she's encouraging this woman and anyone else who finds themselves in a similar spot to call their insurance agent immediately.
"If you have questions about your insurance coverage, your agent is your first line of defense! Your insurance agent is your first line of defense!" said Miller.
Beyond that, she adds that in order to help prevent this from happening to anyone in the future, our state will have to keep working to fix the market so that we increase the number of insurance providers who offer coverage in Florida.
"We've got to continue to make this market more robust, more competitive, which is good for consumers. I feel confident that this governor and legislature are going to do everything they can to do that," she said.
ABC Action News called and emailed Allstate, the parent company of Castle Key, to learn more about why this change was made and how many other policyholders may be impacted. The company's media sent along the following statement:
"Castle Key is actively working with regulators to ensure we can protect as many customers as possible over the long haul. While the cost to protect Florida homes is higher than the price of policies, we’re committed to the state of Florida and confident recent insurance reforms will improve coverage availability over time."
We are still pushing for more specific answers to our questions.
