The insurer is the fourth largest in the state and is leaving due to hurricane-related losses.
The fourth largest Louisiana home insurance company, FedNat Holding, has announced that it will stop renewing policies due to the losses it has suffered over the last 15 months from hurricane claims.
The homeowners’ insurer has stated that it will also be making its way out of Texas for the same reason.
According to the announcement from FedNat, made by its CEO Michael H. Braun, it will be leaving the Texas and Louisiana home insurance markets. Instead, it will be placing its focus on providing coverage in Florida.
“The impact of these significant catastrophe weather events has put a strain on FedNat’s capital position and further action is now appropriate,” explained Braun within the official statement from the company. “We are therefore exiting the non-Florida markets and refocusing on the improving Florida homeowners market.”
Florida is far from being free of challenges due to severe storms such as hurricanes. That said, when compared to Texas and Louisiana, it has fared reasonably well over the last year and a half. The company has decided to place its primary focus within the Floridian market as efforts are made there to evolve coverage and achieve a balance between risk and premiums.
The insurer will cease its Louisiana home insurance policy renewals on their anniversary dates, starting in 2022.
As of January 2022, FedNat Holdings will no longer renew any of its homeowners’ policies. Until then, it will continue to renew policies as usual, though this will only provide policyholders time to start looking for coverage elsewhere, as they will not be able to expect their policies to renew again next year. New policies will also no longer be sold at that time.
The company has $81.3 million in premiums in the state between its two Louisiana home insurance businesses there, Maison Insurance and FedNat Insurance Company. This, according to data from the Louisiana Department of Insurance. Neither of those businesses will be continuing to sell new policies or renew existing ones as of the new year. This has been an ongoing trend in coastal states as carriers step away from regions hit hardest by increasingly frequent and destructive Atlantic storms.