Jeffrey Wade
United Property & Casualty Insurance Company (UPCIC), commonly known as UPC Insurance, was ordered into liquidation by the Second Judicial Circuit Court in Leon County, Florida, on February 27, 2023. The company's policies were cancelled effective March 29, 2023, impacting thousands of UPC policyholders in Florida, who were left seeking new insurance options. UPC's insolvency was likely triggered by a combination of litigation issues and frequent natural disasters, leading to a turbulent market and increased insurance rates. The Florida Insurance Guaranty Association (FIGA) has taken on the responsibility of processing and paying UPC's claims, but the significant volume of claims has resulted in delays and challenges in obtaining necessary claims data. UPC's parent company has rebranded as American Coastal Insurance Corp, marking a new chapter in the aftermath of UPC's insolvency.
| Characteristics | Values |
|---|---|
| Insolvency | Yes |
| Rebranding | American Coastal Insurance |
| Financial Stability Grade | A Exceptional |
| Number of Policies | 146,260-180,000 |
| States/Areas | Florida, Georgia, Louisiana, North Carolina, New York, South Carolina, Texas |
| Cancellation Date | March 29, 2023 |
| Proof of Claim Forms Mailed | June 9, 16, 21, 2023 |
| Proof of Claim Deadline | February 27, 2024 |
| Claims Taken Over by FIGA | 12,000+ |
| Claims Pending | 1,650 |
| Claims Closed | 87% |
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What You'll Learn
- UPC policyholders should contact multiple agents to obtain quotes for a new policy
- UPC policyholders should contact Citizens for a quote if they are unable to find a policy in the private market
- UPC policyholders with open claims should continue contacting UPC about their claim unless they are notified it has been sent to LIGA
- UPC is the seventh insurance company to exit Florida in 2022
- UPC policyholders in Florida lost their homeowners' insurance
UPC policyholders should contact multiple agents to obtain quotes for a new policy
United Property & Casualty Insurance Company (UPCIC or UPC) was ordered into receivership for liquidation in February 2023. This means that UPC is insolvent and will be liquidated, resulting in the cancellation of its policies. UPC policyholders will need to obtain new insurance policies to ensure they remain covered.
As UPC policies will be canceled, it is important for UPC policyholders to act promptly and contact multiple agents to obtain quotes for new policies. By reaching out to both captive and independent agents, UPC policyholders can obtain a range of quotes and find the best option for their needs. This is especially important given the instability in the Florida insurance market, with UPC being the seventh insurance company to exit the state in 2022.
While some UPC policyholders may be covered by Tampa-based insurance firm Slide, which acquired the renewal rights for over 91,400 Florida homeowners insurance policies, not all policies will be assumed by Slide. Policyholders whose policies are not covered by Slide will need to take proactive steps to secure new coverage. Obtaining multiple quotes will help ensure they find a suitable policy at a competitive price.
The Louisiana Department of Insurance (LDI) is working to support UPC policyholders and recommends obtaining quotes from multiple agents. Policyholders can use the LDI Agent Search Tool to find agents and should also consider asking an agent to contact Citizens for a quote if they are unable to find a policy in the private market. While a Citizens policy may be an option, the LDI encourages policyholders to continue shopping for a new policy as more insurers are expected to enter the market following the implementation of the Insure Louisiana Incentive Program.
By contacting multiple agents and exploring various options, UPC policyholders can make informed decisions about their new insurance policies. This proactive approach will help ensure they have the necessary coverage in place without delay.
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UPC policyholders should contact Citizens for a quote if they are unable to find a policy in the private market
United Property & Casualty Insurance Company (UPCIC), doing business as United Property and Casualty Insurance (UPC), was ordered into receivership for liquidation by the Second Judicial Circuit Court in Leon County, Florida, on February 27, 2023. UPC was deemed insolvent, and all its insurance policies, except flood policies, were cancelled effective March 29, 2023, at 12:01 a.m.
As UPC exits the insurance market, thousands of its policyholders in Florida will lose their homeowners' insurance. The Louisiana Department of Insurance (LDI) and insurance agents have provided recommendations for UPC policyholders to navigate this transition.
The LDI suggests that UPC policyholders take proactive steps to obtain new insurance policies. They recommend contacting multiple agents, including both captive and independent agents, to obtain various quotes for new policies. UPC policyholders can utilize the LDI Agent Search Tool to find agents and obtain quotes.
If UPC policyholders are unable to find a suitable policy in the private market, the LDI advises contacting Citizens for a quote. Citizens, also known as the Louisiana Citizens Insurance Corporation or Louisiana Citizens, is the state's insurer of last resort. While obtaining a Citizens policy, policyholders should continue exploring other options in the private market, as the LDI anticipates more insurers to enter the market following the implementation of the Insure Louisiana Incentive Program.
It is important to note that if a UPC policyholder obtains a Citizens policy and subsequently transitions to a private company, Citizens will refund any unearned premium. Additionally, policyholders with open claims or pending claims with UPC should continue to monitor the status of their claims. UPC claim files will be transferred to the Florida Insurance Guaranty Association (FIGA) or the Louisiana Insurance Guaranty Association (LIGA), depending on the state. Policyholders can refer to their respective state's guidelines for handling claims with insolvent insurers.
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UPC policyholders with open claims should continue contacting UPC about their claim unless they are notified it has been sent to LIGA
United Property & Casualty Insurance Company (UPCIC or UPC) was ordered into receivership for liquidation by the Second Judicial Circuit Court in Leon County, Florida, on February 27, 2023. UPC was deemed insolvent, and all its insurance policies were cancelled effective 12:01 am on March 29, 2023.
UPC policyholders with open claims should continue contacting UPC about their claim unless they are notified that it has been sent to the Louisiana Insurance Guaranty Association (LIGA) for adjusting and payment. This is because UPC's claims files will be transferred to LIGA, and they will take over the processing and payment of these claims.
Policyholders should be aware that there may be delays in the processing of their claims by LIGA due to the high volume of claims and the possibility of missing or incomplete files from UPC. Policyholders can monitor LDI communications for updates on the status of the Insure Louisiana Incentive Program, which aims to provide alternative insurance options for affected UPC customers.
In the meantime, UPC policyholders should contact multiple agents to obtain quotes for a new policy and consider all available options to avoid having to obtain a policy with Louisiana Citizens, the state's insurer of last resort. Policyholders who obtain a Citizens policy are advised to continue shopping for a new policy, as more insurers are expected to enter the market following the implementation of the Incentive Program.
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UPC is the seventh insurance company to exit Florida in 2022
United Property & Casualty Insurance Company (UPCIC), commonly known as UPC Insurance, was ordered into liquidation by the Second Judicial Circuit Court in Leon County, Florida, on February 27, 2023. This event marked UPC as the seventh insurance company to exit Florida in 2022, with the company cancelling its policies by March 29, 2023.
The exit of UPC Insurance from the Florida market left thousands of policyholders without homeowners' insurance. The company, which was based in St. Petersburg, Florida, and licensed in the state since 1999, had approximately 146,260 in-force policies at the time of receivership. The liquidation of UPC Insurance was precipitated by the company's insolvency, which was officially declared by Florida regulators following Hurricane Ian, to which UPC had considerable exposure.
In the aftermath of UPC's insolvency, the Florida Insurance Guaranty Association (FIGA) assumed responsibility for outstanding claims. FIGA is a non-profit organisation established by the state to handle claims for insolvent insurance companies. As of February 2024, FIGA had taken on over 12,000 UPC claims related to Hurricane Ian, with approximately 87% of those claims closed. However, the organisation faced challenges due to missing or incomplete files from UPC, leading to delays in processing some claims.
Prior to its liquidation, UPCIC merged with Family Security Insurance Company, Inc., with UPCIC as the surviving entity. Following UPC's exit from the market, the Tampa-based insurance firm Slide acquired the exclusive renewal rights for over 91,400 Florida homeowners insurance policies from UPC. Slide, which holds an A-rated financial stability score, committed to providing seamless coverage for eligible customers without immediate premium changes.
The exit of UPC Insurance from Florida is indicative of the instability in the state's insurance market. The Office of Insurance Regulation has identified 23 other unstable insurers on its "watch list," underscoring the ongoing challenges in the industry.
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UPC policyholders in Florida lost their homeowners' insurance
United Property & Casualty Insurance Company (UPCIC), also known as UPC Insurance, was ordered into liquidation by the Second Judicial Circuit Court in Leon County, Florida, on February 27, 2023. The company was deemed insolvent, and all insurance policies except for flood policies were cancelled effective March 29, 2023.
As a result, thousands of UPC policyholders in Florida lost their homeowners' insurance. UPC was the seventh insurance company to exit Florida in 2022, contributing to the instability in the state's insurance market. The average home insurance cost in Florida is already significantly higher than the national average, and the exit of UPC further exacerbated the situation.
Tampa-based insurance firm Slide acquired the exclusive renewal rights for over 91,400 Florida homeowners' insurance policies from UPC. Slide, with its A-rated financial stability score, began covering eligible customers immediately after their UPC policies were cancelled. Slide assured customers that there would be no premium changes until the policy renewal. However, Slide also stated that it would not be responsible for assuming outstanding claims related to hurricane damages, which would instead be handled by the Florida Insurance Guaranty Association (FIGA).
Policyholders with open claims or seeking updates on the status of their claims were advised to continue contacting UPC until notified that their claim had been transferred to FIGA. FIGA, a non-profit organization, faced challenges due to the volume of claims and issues with obtaining complete claims data from UPC. Nevertheless, FIGA managed to close approximately 87% of the UPC claims within a year, demonstrating their commitment to resolving the claims.
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Frequently asked questions
Yes, UPC has gone out of business. The Florida Department of Financial Services is the court-appointed receiver of UPC.
UPC policies were cancelled 30 days after the company was placed into liquidation by the Florida Office of Insurance Regulation. UPC policyholders should contact multiple agents to obtain quotes for a new policy.
If you have an open claim with UPC, it may be transferred to the Louisiana Insurance Guaranty Association (LIGA) or the Florida Insurance Guaranty Association (FIGA) for adjusting and payment. Continue contacting UPC about your claim unless you are notified it has been sent to LIGA or FIGA.
