Fidelity subsidiary buys existing Florida flood insurance policies

Fidelity National Financial's property and casualty insurance subsidiary has approval to purchase 63,000 flood insurance policies throughout Florida, the company said today.

Florida's Department of Financial Services has approved Fidelity National Property and Casualty Insurance Co.'s purchase of all existing flood insurance policies of Southern Family Insurance Co.

The transaction involves more than 63,000 flood insurance policies originated through a network of Florida independent agents in conjunction with the National Flood Insurance Program. Under the program, the federal government makes flood insurance available to owners and renters of residential and commercial properties as financial protection against flood losses and maintains the underwriting risk associated with potential claims. Borrowers are required by law to purchase flood insurance to obtain financing associated with a residential or commercial structure located in a federally designated Special Flood Hazard Area.

Fidelity will service the policies through its affiliated in-house flood-processing unit located in St. Petersburg, Fla. The company expects the transition to be seamless for agents and policyholders during the current hurricane season, a potentially critical time for holders of flood insurance policies.

The Fidelity National Property and Casualty Insurance Group is the largest writer of flood insurance through the National Flood Insurance Program.

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