Insurer cancellations are on the rise. This is probably not news to those living in hurricane prone areas such as Florida or Texas. But, insurers are also cancelling policies in NY and Connecticut. Huh?
Some legislators are calling it a crisis. The insurers say they are only being smart about business and avoiding future risks.
Insurers need to remain solvent, for sure. But they are recording record profits. So, they apparently are going to be solvent for some time. And if every insurer cancels policies in some locations, where are those people to get insurance? Sure, insurers have a reason to be cautious in places like New Orleans or Texas, where hurricane damage has caused millions in losses. But, what exactly are the concerns in NY or CT or NJ?
For now, consumers need to be cautious about who they are getting insured with. Once you get a nonrenewal, start shopping around – and make sure you use a good broker!