May 16, 2022

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Insurance company goes out of business after man pays

State of Florida responsible for issuing refund

TAMPA, Fla. (WFLA) – What happens if you pay your homeowner’s insurance premium and then the company closes?

When Gulfstream Property and Casualty shut its doors last summer, a Largo man was told the state of Florida would refund his money. Nearly eight months later, he hasn’t seen a dime.

He turned to Better Call Behnken for help.

Irv Miller said he was forced to pay more for a policy with another company but was assured he would receive a refund from Gulfstream. He had just paid his premium.

“The 30 days came and went,” he said.

Then he learned the company’s assets were turned over to the state of Florida. But when he called for more information, he’d hear a recording with the same story he heard in August – wait 30 to 60 days.

“Nobody’s communicating anything and you can’t talk to anybody,” he said.

Within hours of a call from Better Call Behnken, Irv received a call back from the state. Apparently, he was told, the state did send his check in the mail but it was returned because of a mistake in the address.

A state spokesman said a new check would go out immediately.

The spokesman said he believes this is an isolated case caused by a mistake. But it’s a reminder that if your insurance company closes, you may also be owed a refund of unused premiums so check your policy and check with your insurance agent.