Florida homeowners have every reason to pay close attention when their insurer makes headlines. Too many carriers have collapsed in recent years, leaving policyholders scrambling for coverage. People’s Trust Insurance has generated enough news — a pause on new policies, mass cancellations in South Florida, and a 2026 federal lawsuit — to trigger real concern.
But there’s a big difference between a company that’s struggling and one that’s actually failing. This article breaks down what’s really happening with People’s Trust, what the regulators show, and what you should do to protect yourself either way.
Who People’s Trust Insurance Is
People’s Trust Insurance was founded in 2008 in Deerfield Beach, Florida. It’s a privately held company co-founded by George Schaeffer and Michael Gold, with Schaeffer serving as President and CEO.
At its peak, People’s Trust was the 11th-largest homeowners insurer in Florida with more than 110,000 policyholders. The company built its brand around Florida-focused homeowners coverage, a direct-repair contractor network, and aggressive marketing tied to hurricane response.
That context matters. Florida is one of the most volatile home insurance markets in the country. Carriers here face hurricane risk, surging reinsurance costs, and frequent litigation. Any news about a Florida insurer hitting a speed bump lands differently than it would in a calmer market.
What “No Longer Accepting New Business” Actually Means
The most common reason people search “Is People’s Trust going out of business” traces back to an announcement the company made on April 27, 2023. People’s Trust told agents it was stopping new business applications, effective that same day at 5 p.m. EST.
The last day to submit quotes to underwriting was May 4, 2023. All quotes had to be bound by May 5, 2023. The company cited rising reinsurance costs as the reason and stated it anticipated reopening once it had updated rates in place.
This kind of move sounds alarming, but it’s a risk-management decision — not a collapse. Think of it like a bank temporarily stopping new credit card approvals because its cost of funding spiked. Existing cardholders still have active accounts. The bank isn’t shutting down; it’s adjusting.
Reinsurance is essentially insurance for insurance companies. When those costs spike — usually after active hurricane seasons — smaller carriers often reduce their exposure rather than overextend. Several Florida insurers have made similar moves in recent years. An underwriting pause does not cancel, void, or affect existing policies on its own.
What Florida Regulators Actually Show
The most authoritative answer to whether People’s Trust is failing comes from regulators, not online forums.
A Florida Office of Insurance Regulation (OIR) market regulation document dated March 1, 2024, lists People’s Trust as a domestic property and casualty insurer authorized to conduct business in Florida. Its original authorization date was March 6, 2008. As of that document, the company was still a licensed, active Florida insurer.
The OIR monitors solvency, conducts market conduct exams, and issues formal orders when a company needs corrective action, rehabilitation, or liquidation. No such order has been publicly issued for People’s Trust based on the available regulatory documentation.
That’s a meaningful data point. Multiple Florida insurers have been placed into receivership or liquidated in recent years — companies like St. Johns Insurance, Avatar Property and Casualty, and Weston Property and Casualty. The process is public and documented. The absence of a similar order for People’s Trust isn’t just a lack of bad news. It means regulators haven’t pulled the company’s authorization.
You can verify current company status directly at the Florida OIR website (floir.gov) and the Florida Insurance Guaranty Association (FIGA) site. Those are your two most reliable sources.
Policy Cancellations, a Federal Lawsuit, and What They Actually Signal
Two other developments have fueled concern about People’s Trust: a pattern of policy cancellations in South Florida and a 2026 federal lawsuit.
The South Florida Cancellations
Legal commentary has documented that People’s Trust canceled roughly 5% of policies in certain South Florida counties — including Broward, Palm Beach, and Miami-Dade — prior to hurricane season. The company stated it needed to rebalance its risk portfolio.
For affected homeowners, the timing was brutal. Losing coverage just before hurricane season meant scrambling for replacement policies, often at higher cost or through Citizens Property Insurance Corporation, Florida’s insurer of last resort.
This is a legitimate grievance. Canceling policies to manage exposure is legal, but it leaves real people in a difficult spot. What it does not mean, however, is that the company is about to collapse. It’s a controversial business decision, not a sign of insolvency.
The 2026 Lawsuit
In February 2026, a Florida homeowner filed a federal lawsuit against People’s Trust and Top Line Insurance Agency in U.S. District Court. According to the lawsuit, the homeowner was told before Hurricane Milton that a National Flood Insurance Program (NFIP) policy was in force — and then, after the storm caused losses, the policy was rescinded and the claim was denied.
The allegations include breach of contract against People’s Trust, negligent procurement against the agency, violations of the Florida Deceptive and Unfair Trade Practices Act, and misrepresentation under Florida Insurance Code 626.9541(1)(i). The suit seeks damages over $75,000 and a jury trial.
These are allegations, not established facts. Courts will decide what actually happened. But the lawsuit matters for one reason: if the facts alleged are accurate, it describes exactly the kind of conduct that damages consumer trust and generates “are they going under?” searches.
Individual lawsuits are common in the insurance industry. One case doesn’t signal insolvency. But combined with the cancellations and the underwriting pause, the pattern gives homeowners reasonable cause to watch this company closely.
What to Watch For — Real Warning Signs at Any Florida Insurer
Whether you’re insured with People’s Trust or anyone else, these are the signals that actually indicate a company is in financial trouble:
- OIR regulatory orders — Look for notices about supervision, rehabilitation, or liquidation on the Florida OIR website.
- Financial rating downgrades — Companies like Demotech and AM Best rate insurer financial stability. A downgrade or withdrawal of a rating is a serious red flag.
- FIGA notices — The Florida Insurance Guaranty Association publishes information about insolvent insurers it has stepped in to cover.
- Mass nonrenewals beyond isolated risk adjustments — A company cutting thousands of policies across all regions, not just high-risk areas, can signal deeper problems.
- Unpaid claims backlogs — Consistent reports of delayed or denied claims beyond normal dispute levels can indicate cash flow issues.
None of these definitive red flags appear to be present for People’s Trust in the publicly available documentation reviewed here. But that can change. Check official sources before assuming everything is fine — or that it isn’t.
What Happens If a Florida Insurer Actually Goes Under
If an insurer is declared insolvent in Florida, a court orders liquidation or receivership. At that point, the Florida Insurance Guaranty Association (FIGA) steps in to handle covered claims up to statutory limits. Policies are typically canceled early, and policyholders must find replacement coverage — often through Citizens or the private market.
This process is documented and public. If it happens to People’s Trust, you will hear about it officially. You won’t find out from a Reddit post before the OIR makes it official.
If you want a broader picture of how Florida’s volatile insurance market affects business decisions — from carrier choices to risk management — StartBusinessPros covers the kind of practical business issues Florida entrepreneurs and property owners face regularly.
What You Should Do Right Now If You’re a People’s Trust Policyholder
You don’t need to panic, but you should be proactive. Here’s what makes sense regardless of which insurer covers your home:
- Read every piece of mail from your insurer — Renewal notices, nonrenewal notices, and cancellation letters have legal deadlines. Missing them costs you options.
- Check your policy’s renewal date — If People’s Trust sends a nonrenewal notice, you’ll need time to shop alternatives. Start early, not the week before your policy lapses.
- Verify your company’s status with the OIR — Go directly to floir.gov and search for People’s Trust. Don’t rely on third-party sites or social media.
- Talk to a licensed insurance agent — If you’re worried about your coverage, an independent agent can give you real alternatives and compare costs. This is worth doing every renewal anyway in Florida.
- Understand your policy terms — Know your hurricane deductible, what’s excluded, and whether you have separate flood coverage. Flood is not included in a standard homeowners policy, and that gap costs Florida homeowners significantly after storms.
The Bottom Line
As of the latest available regulatory documentation, People’s Trust Insurance is still an authorized Florida insurer. It is not in liquidation, receivership, or runoff based on publicly available OIR records. The 2023 underwriting pause was a response to reinsurance costs, not a sign of collapse. The cancellations and the 2026 lawsuit are legitimate concerns about business conduct, but they don’t equal insolvency.
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