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HomeWise Preferred Ordered Into Receivership

Tampa-based HomeWise Preferred Insurance Co. was ordered into receivership on September 2.

By Joan E. Collier | Updated on September 07, 2011

Tampa-based HomeWise Preferred Insurance Co. was ordered into receivership on September 2 for purposes of rehabilitation by the Second Judicial Circuit Court in Leon County. The troubled company ceased writing business effective Sept. 2, 2010, and has no active policies or employees. It does, however, have claims, and during rehabilitation, the receiver (the Florida Department of Financial Services) will continue to process and pay those claims.

Most of the 500 or so remaining claims are sinkhole related, a coverage issue that Homewise Preferred has been fighting for some time. The battle has focused primarily on definitions and policy language. In April, a Florida court threw out its argument that it could deny a homeowner’s claim because, even through sinkhole activity was found, there was no “structural damage” to the home. In August, the company argued that components of its insurance policies “inadvertently” included references to sinkhole coverage.

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