JACKSONVILLE, Fla — Florida Specialty Insurance has 90,000 policyholders across the state who are now being notified that their insurance carrier is out of business.
On Oct. 2 a court declared Florida Specialty Insurance Company insolvent.
"This is basically our hurricane without the dangerous weather," Billy Wagner said. "There's a lot of stuff going on right now."
The state has taken control of the company and plans to liquidate everything. Customers are currently being notified of the situation.
Wager runs Brightway Insurance office in Jacksonville.
"The policy will expire on midnight Oct. 31 or Nov. 1 and there will be no coverage so you have to make a decision now," he said.
In fact, he has 600 customers in the path of this insurance storm and his office is sending out notices about the impending change.
"We are working real hard to communicate to clients to let them know we alternate options but ultimately it is their decision," Wagner said.
He said customers are protected until the end of the month and for those with a claim, Florida's Citizens Insurance will step in to help them.
"There are going to be clients impact where they are in the middle of a claim and no private carrier is going to take that risk on," Wagner said. "So the state has agreed to take over those policies for those consumers."
At Brightway Insurance Corporate staff is preparing for the impact from the failure of Florida Specialty Insurance Company. There are conducting training webinars on the issue.
“We have been communicating and working with our agents and with top-rated insurance companies to secure coverage for as many FSIC policies as possible," CEO Michael Miller said. “As an Insurance Agency, this is the time when our customers need us most, and we took immediate action with an all-hands-on-deck approach."
While customer's insurance policies are binding now, all Florida Specialty customers are being encouraged to call their agent ASAP or they will lose their insurance coverage on Nov. 1.
"It is all hands on deck right now," Wagner said.
The transition to a new provider may come as a price shock to customers.
Apparently Florida Specialty Insurance Companies were much lower than prevailing rates and some customers can expect to see an increase in their new policy with a different carrier.