patrick.net

I guess Florida is not too picky when it comes to being able to designate something as an insurance company. It is member-owned reciprocal carrier. A member-owned reciprocal insurance company (also known as a reciprocal insurance exchange) is an unincorporated association where policyholders, called "subscribers," agree to insure each other. Subscribers are both the customers and the owners, pooling their resources to share risk and cover potential losses.

With only $55 million in capital, if there was a hurricane, I'm gonna bet it would simply cease to exist, and if I were a polcy holder I'd be wondering if I had to pay for damages above that amount incurred by other "subscribers".Usually, a person is at risk only up to his/her policy premium. Additional damages to his property would be covered by the property owner in case the organization goes belly up.

It has no employees. It simply has an agreement with a management company to oversee things. Like I say, any difficult times and the management company just drifts away.

Misc says

With only $55 million in capital, if there was a hurricane

Olympus Insurance has an estimated capital base of around $200–250 million, supported by a strong reinsurance program and a risk-based capital (RBC) ratio of over 600%, according to KBRA’s 2024 rating review.

📊 Olympus Insurance Capital & Financial Strength
• Capital Base: Olympus Insurance Company (Florida homeowners insurer) maintains roughly $200–250 million in statutory capital and surplus.
• RBC Ratio: Reported at 607% in 2024, which is considered very strong for a regional property insurer.
• Reinsurance: Olympus allocates 40–50% of premiums to reinsurance, ensuring protection against catastrophic hurricane losses.
• Ownership: Parent company Gemini Financial Holdings Corp. is being acquired by SageSure Insurance Managers, which may expand capital support.

🔎 Context
• Olympus specializes in Florida homeowners insurance, a market notorious for volatility due to hurricanes and litigation.
• Its capital strength is a key reason KBRA assigned a BBB+ rating with a stable outlook in 2024, though this was placed on Watch Developing in 2025 pending the SageSure acquisition.
• The capital surplus acts as a buffer against underwriting losses and catastrophic events, while the high RBC ratio signals resilience compared to peers.

🧩 Big Picture
• Olympus is well-capitalized relative to its size, but still exposed to Florida’s systemic risks.
• The SageSure acquisition could bolster its capital base further, depending on how integration and reinsurance structures are managed.
• For policyholders, the strong capital position means Olympus is financially capable of paying claims, even in severe hurricane seasons.

Great. Now do that for Ovation Insurance, the company you switched to. That's the one I was talking about. You will find their numbers skimpier.

Misc says

Great. Now do that for Ovation Insurance

Ovation was given the opportunity to take over 81k policies from the State of Florida. Given the price discrepancies between this new insurance company and more established companies, I would guess that a fair number switched. The exact number was undisclosed. Maybe you would have better luck on finding out the number of "subscribers".

In most States the Insurance Commissioner is an elected position because of the fraud that permeates the industry. Generally, if an insurance company goes bust, the State picks up a certain amount of the liabilities. However, given this member owned model it is unlikely that the State is on the hook

I feel that in its zeal to make homeownership more affordable, the Commissioner has neglected the risks of this untried insurer. If the number of policies is anywhere near what I anticipate.

You seem much more trusting than I am. It does not make either of us wrong at this point.

Even Olympus closed 62% of its claims with ZERO outlays.

I don't recommend either.

Misc says

However, given this member owned model it is unlikely that the State is on the hook

Yes, if Ovation Insurance (specifically Ovation Home Insurance Exchange) were to go bankrupt, the state of Florida would provide coverage for your claims through the Florida Insurance Guaranty Association (FIGA), subject to certain limits.

How Florida Protects Policyholders
FIGA's Role: FIGA is a non-profit corporation created by the Florida Legislature that acts as a safety net for policyholders of insolvent property and casualty insurance companies licensed in the state. Ovation Home Insurance Exchange is a Florida-licensed insurer and a member of FIGA.

Covered Claims: When a member insurer is ordered liquidated by a court, FIGA steps in to process and pay covered claims that arose either prior to the liquidation order or within 30 days after the order, unless the policy is replaced sooner.

Coverage Limits: FIGA coverage has specific financial caps:

The maximum amount FIGA will cover is generally $300,000 per covered claim.
For the structure and contents of a residential homeowners' claim, an additional $200,000 of coverage is available, bringing the total cap to $500,000.
FIGA also typically refunds unearned premiums (the portion of your premium for coverage you didn't receive due to the insolvency).

Important Considerations
FIGA Deductible: For companies liquidated on or after July 1, 2021, the separate $100 FIGA deductible has been removed, so only your policy's original deductible applies.
Claim Deadlines: There are strict legal procedures and deadlines for filing claims with FIGA. You must fully settle your claim with FIGA or file a lawsuit against them before the deadline, which is typically one year after the "Claim Deadline" established for the failed insurance company.

Looks like the State is on the hook. Just don't expect any timely resolution.

Misc says

Looks like the State is on the hook. Just don't expect any timely resolution.

Yes, the state of Florida is the last resort to bail out the property insurance companies. Ovation Insurance does have some protection through reinsurance.

https://www.miamiherald.com/news/business/real-estate-news/article313193271.html

Summary: Miami’s housing market, after years of rapid price growth, is finally showing signs of cooling. A new real estate index reveals that home prices in Miami-Dade have begun to flatten and even decline in some areas, marking the first sustained slowdown since the pandemic-era boom.

🏠 Key Points from Douglas Hanks’ Miami Herald Article
• Cooling Trend: The real estate index shows Miami housing prices are no longer climbing at the double-digit pace seen in recent years.
• Market Shift: After a “hot run” fueled by migration, investment, and low interest rates, the market is now adjusting to higher borrowing costs and affordability pressures.
• Regional Impact: While Miami-Dade remains one of the nation’s most expensive housing markets, the rate of appreciation has slowed significantly, with some neighborhoods experiencing outright declines.
• Buyer Behavior: Rising mortgage rates and insurance costs are dampening demand, leading to longer listing times and more price cuts.
• Economic Context: The slowdown reflects broader national trends, but Miami’s market is particularly sensitive due to its reliance on out-of-state buyers and investors.

🔎 Why It Matters
• Affordability Relief: For local residents, the cooling may offer some relief after years of surging prices that pushed homeownership out of reach.
• Investor Caution: Speculative buyers may pull back, reducing volatility but also slowing new development.
• Policy Implications: The shift underscores the need for affordable housing initiatives as Miami balances growth with livability.

In short: Miami’s housing market, once red-hot, is now entering a cooling phase, with price growth slowing and affordability pressures reshaping buyer demand.

AD says

with price growth slowing

That still means prices are increasing.

https://www.realtor.com/news/trends/florida-home-prices-drop-2026-forecast/

As expected, Florida real estate will drop a few percentage points while household income increases 2 to 3% a year. The soaring insurance cost is mostly in the beach high-rise communities as far as complying with state law and property insurance requirements after the Sunrise tower collapse.

Speaking of collapse, a Cold Snap coming around December 9th.

Might get into the 40s and 50s at night in parts of the Panhandle and Central FL!

It'll be interesting whether rock bottom FL wages ($7,000 below national average of $60k) will rise to average US levels, or whether FL housing costs will move closer to the US average (with 7-10% drop needed).

Post-COVID, FL is a mess with 10% below average national worker pay but 7-10% above national average housing costs. Pre-COVID, it was normal as lower than national average wages were offset by lower than average housing. Florida used to have bottom 20% wages AND housing of all states, which cancelled each other out - and far lower prop tax and insurance.

DemoralizerOfPanicans says

Speaking of collapse, a Cold Snap coming around December 9th.

Might get into the 40s and 50s at night in parts of the Panhandle and Central FL!

It'll be interesting whether rock bottom FL wages ($7,000 below national average of $60k) will rise to average US levels, or whether FL housing costs will move closer to the US average (with 7-10% drop needed).

Its beach weather in Florida panhandle from first week of March to Thanksgiving weekend, or about 9 months.

Whereas in Miami I suspect its beach weather at least 11 months out of year.

The local economic development alliance said similarly that housing costs will stay flat while household income increases 3 to 4% a year.

I'm hearing more locally in Panama City Florida about property and car insurance decreasing, and also property taxes are remaining flat as well.

Gas is around $2.60 a gallon and a dozen eggs are around $2.50 at Publix, all a lot less than during the Birdbrain Biden regime.