Homeowners Choice Property & Casualty Insurance Company, Inc., a Florida based provider of homeowners insurance and wholly-owned insurance subsidiary of HCI Group, Inc., announced at a press conference it is the first admitted homeowners insurance carrier to provide flood insurance in the state of Florida since the advent of the Biggert-Waters Flood Reform Act of 2012.
To mark the milestone, Homeowners Choice’s executive chairman, Paresh Patel, signed the company’s first flood coverage policy. Homeowners Choice’s client is Mr. and Mrs. Joseph Chapman of Seminole, Florida. The Chapmans purchased the home in 2013 under the new laws; the family’s flood coverage in 2013 was approximately $9,700. Their 2014 premiums are scheduled to total $57,000. Homeowners Choice is issuing the policy for a total of $9,693, which includes both homeowners and flood coverage.
Many Florida residents have seen a substantial increase in their flood insurance premiums as a result of the Biggert-Waters Flood Insurance Reform and Modernization Act of 2012. In December 2013, Homeowners Choice was approved by regulators to add an endorsement to its policies to include flood coverage. The carrier’s established rate for flood coverage is expected to be similar to the rates being offered prior to the new laws. New and preexisting Homeowners Choice customers are eligible to receive flood coverage. However, customers must hold a homeowners insurance policy with the company.
"Our policyholders were our top priority as we made the decision to offer flood insurance," said Paresh Patel, Homeowners Choice’s executive chairman. "We want to try to help our customers who were hit hardest by hefty rate increases under the National Flood Insurance Program."
Homeowners Choice has launched a Flood Hotline (844) HC-FLOOD or (844) 423-5663 where it will field questions from current and potential customers. The company will also answer questions on its website www.HCFLOOD.com.
Admitted and Non-Admitted Insurance Companies:
A Florida admitted carrier is an insurance company licensed by the State of Florida to transact insurance in the state of Florida. Admitted carriers, or standard carriers as they are often referred to, are highly regulated by the Florida Office of Insurance Regulation. They cannot change rates without the approval of the state regulators and their policy forms and endorsements must be approved as well.
About Homeowners Choice:
Headquartered in Tampa, Florida, Homeowners Choice provides property and casualty homeowners' insurance, condominium owners' insurance and tenants' insurance to Florida property owners. Homeowners Choice serves approximately 170,000 policyholders throughout Florida. Homeowners Choice is a wholly owned subsidiary of HCI Group, Inc., a New York Stock Exchange listed company whose common shares trade under the ticker symbol "HCI." For more information about Homeowners Choice, visit www.hcpci.com.
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