Just before the start of the 2014 Hurricane Season, People’s Trust
Insurance Company, an unorthodox company, is now pulling insurance away
from thousands. Last year, the company was awarded the
2013 Governor’s Innovators in Business Award
for being a company that has set a standard for entrepreneurship and
creativity. But this year, People’s has turned its back on many
homeowners, leaving them scrambling for insurance.
Since its
inception, the business plan of People’s Trust has been to have its
affiliated construction company repair damaged homes instead of paying
policyholders to fix the damage. This manner of handling property damage
has been found by many Florida homeowners to be an awful experience.
People’s Trust has creatively found a way to skate out on paying valid
insurance claims and has done repair jobs that a few clicks on the web
will show a catalogue of complaints from policyholders who have had
nightmare experiences dealing with Rapid Response Team and their attempt
to “fix” problems. Or, as some of their clients have experienced, complete
denials of insurance proceeds in cases where the repair company’s
actions did not equate to a big profit.
Florida is a large state and for the past year or so People’s Trust
has been pumping large funds into marketing all across the state with
hopes that people will fall for the mailer images that tug on the
heartstrings, and buy a discounted policy that offers little protection.
People’s Trust has relied on teddy bears and cute children models (this
month’s flyer is a baby eating cake) to lure in Floridians who are
hoping for a solution to their insurance woes. Some homeowners changed
to People’s Trust because the advertisements promise something that
every Floridian is looking for…a way to save on what can be extremely
hard to find – homeowner’s insurance. Many Floridians have been hoping
for more competition in the property insurance world so they can have a
choice of carriers and not just be “stuck with Citizens.” But now many
of those same homeowners who were mailed giant, glossy banners that
looked like a life raft have had their policies canceled.
Charles Elmore, of The Palm Beach Post, has been doing a fantastic job covering the actions of People’s Trust these past few weeks. You should also check out his coverage on Citizens Property Insurance Corporation. Earlier this month, Elmore
reported that People’s Trust was canceling thousands of new policies in
South Florida during the first 90 days of a new policy. The
cancellations happened just a few months after People’s Trust founder,
Michael (Mike) Gold, passed away in January. Gold was 60 years old and
was reported to have died in his sleep. Knowing that People’s Trust was
his brain child, we were sure that the company would make some changes.
The company had been sending giant glassy ads to my mailbox, but ads
tapered off in my neighborhood for a short time. Now they are back.
As evidenced by the cancellation notices to thousands of policyholders,
there must have been major executive decisions made in March. It has now
been reported that People’s Trust is not writing new policies in Dade,
Broward, or Palm Beach County. People’s Trust has also transferred its
headquarters from Boca Raton to Deerfield Beach.
The company’s director of marketing, someone likely in charge of the
mass mailing and heavy advertising for the company, has to have a count
on how many Floridians have been targeted by the company this year, yet
Genie O’Loughlin says the company is being prudent in their risk
portfolio now that the 2014 storm season is here. Seriously? Hurricane
seasons comes every June. What was this company thinking!? The company
calls it “prudent exposure management strategies to more effectively
diversify and balance the company’s risk portfolio as we enter the 2014
storm season.” We question, whether someone finally recognized that the
way claims are being handled by Rapid Response Team is falling short,
and the model of repairing all homes itself won’t be possible when the
amount of damage increases and the frequency of claims rise? Or did they
know this all along?
Many policyholders are also questioning whether the cancellation
notices, coming so close to the start of hurricane season, are proper
under Florida’s law, and now they are searching to find new insurance at
astronomical rates.
Contact us for all your Insurance needs! (321)725-1620
Bob Lancaster Insurance
Serving Florida since 1964