Important Message For Florida Homeowners

Dear Florida Homeowner,

At Universal North America, we take the responsibility of protecting you and your home seriously. That is why we go to great lengths to ensure our financial strength and stability, making sure our resources are more than enough to cover homeowners’ claims, even in the event of a major catastrophic storm.

What’s All the Fuss About Reinsurance?

No doubt you’ve heard about the insurance rate controversy in Florida. At the heart of the matter is a product called “reinsurance.”

Reinsurance is necessary to provide companies additional protection from catastrophes like those we experienced in 2004 and 2005. During those record-breaking seasons, Universal paid out more than $130 million in claims. Not all companies could have handled it, but Universal stood strong and paid policyholders promptly. How? Responsible underwriting. Adequate pricing. Sound financial management and finally, solid reinsurance.

Minimum simply is not good enough

Many insurance companies purchase only the minimum required reinsurance protection which is mandated by the Florida Office of Insurance Regulation – coverage to protect companies in the event of a 1-in-100-year storm. We go well beyond the minimum and purchase coverage for a 1-in-250-year storm. Our modeling indicates that a catastrophe of this magnitude would be likely if a Category 3 hurricane were to strike the Naples/Fort Myers area heading north into the Orlando area with wind speeds of 127 mph.

State regulators may have you believe that purchasing reinsurance to the lower standard is adequate. According to the executive vice president of the Florida Insurance Council, this level of financing would have been woefully inadequate for a Hurricane Andrew smashing Miami/Fort Lauderdale or another 1926 Miami hurricane. Legislators may also have you believe we can depend on the Florida Hurricane Catastrophe Fund to respond to a major catastrophe. But history has proven that government funded programs can be slow and inefficient in their response, when displaced homeowners need assistance immediately.

We believe policyholders like you choose Universal because you can be confident we will deliver on our promise to you – even in a catastrophe.

Working toward a long-term solution for Florida homeowners

The true long-term solution to the Florida homeowners insurance crisis lies within retrofitting our homes, so that they are strong enough to withstand hurricane force wind and rain. Spending 12 billion dollars to provide insurance carriers with subsidized low cost government reinsurance does nothing to prevent costly damage to Florida homes. Universal is working for a solution and very soon will roll out a program to assist families in retrofitting their homes for storm safety. Our commitment to you is unshakable. We’re here for the long haul – for you and your family.

Sincerely,

Rick Espino, President
Universal North America