Hollywood home insurer giant ordered to slash rates

Ten-percent reduction to save Florida homeowners $51M

TRD MIAMI /
Oct.October 09, 2013 03:00 PM

American Security Insurance Company, the Hollywood-based force-placed homeowner insurance company that is the largest of its kind in the state, must lower its policy rates by 10 percent.

The rate reduction, ordered by the Florida Office of Insurance Regulation, is expected to save homeowners across the state $51 million. The company, located at 6223 Pembroke Road, has more than 142,000 insurance policies in Florida, with $508 million in premiums. If a borrower opts not to buy insurance, lenders can order force-placed insurance. Dozens of lawsuits across the U.S. have alleged that these policies are too expensive and teeming with insider deals. Last month, JPMorgan Chase paid a $300 million settlement in a related federal class action suit in Miami.

Regulators also required American Security to stop paying commissions on policies arranged by mortgage servicers and to notify all present borrowers about the coverage changes. [South Florida Business Journal]Mark Maurer


Related Articles

arrow_forward_ios
Atma Beauty in Miami and Lloyd's of London (Credit: Google Maps, Leon Neal/AFP via Getty Images)

Miami Beach salon sues Lloyd’s of London over coronavirus claim

Miami Beach salon sues Lloyd’s of London over coronavirus claim
From left: Avra Jain, Scott Sherman, Josh Migdal, Tony Arellano, Devlin Marinoff and Jason Kellogg

“A landlord waiving rent and not getting anything in return is just not a reality:” experts sound off on pandemic’s effect on South Florida’s retail market

“A landlord waiving rent and not getting anything in return is just not a reality:” experts sound off on pandemic’s effect on South Florida’s retail market
Miami skyline (Credit: iStock)

SoFla real estate deals on hold: Insurers delay closings ahead of Hurricane Dorian

SoFla real estate deals on hold: Insurers delay closings ahead of Hurricane Dorian
Chase branch at 6916 Collins Avenue with Roberto Susi and Jose Sasson of Axiom Capital Advisors

If you can’t beat ‘em, join ‘em: JP Morgan buys North Beach branch

If you can’t beat ‘em, join ‘em: JP Morgan buys North Beach branch
Hurricane Irma storm damage in Florida (Credit: iStock)

Citizens Property Insurance pulls back on rate hikes

Citizens Property Insurance pulls back on rate hikes
Hurricane damage in Florida (Credit: iStock)

“No one should be lending for 30 years in most of Florida,” financial climate analyst warns

“No one should be lending for 30 years in most of Florida,” financial climate analyst warns
Insurance premiums could rise as more extreme storms hit coastal markets

Insurance premiums could rise as more extreme storms hit coastal markets

Insurance premiums could rise as more extreme storms hit coastal markets
Reinsurers want rates raised after natural disasters tally billions in real estate damage

Reinsurers want rates raised after natural disasters tally billions in real estate damage

Reinsurers want rates raised after natural disasters tally billions in real estate damage
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...