Insurance Information Institute: Florida Homeowners Insurance Faces Multiple Challenges

SAINT JOHN’S, Florida, Aug. 10 — The Insurance Information Institute released the following news:

Confusion in Florida to The homeowner’s insurance market is reeling from a surge in federal lawsuits and common fraud practices, according to an Issues Brief published today by Insurance Information Institute (Triple-I).

“Floridians are seeing the ups and downs of homeowners insurance because over the years the state has been home to many lawsuits and roof replacement scams,” he said. Sean KevelighanCEO, Triple-I. “These two factors have contributed greatly to the destruction of records Florida to Homeowners insurance premiums increased between 2017 and 2021.” Florida Homeowners pay higher average property insurance premiums US to $4,231about three times US approximately $1,544According to Triple-me analysis.

The net underwriting losses of Florida domestic industry continued $1 billion in 2020 and 2021, Triple-me Brief Issues were identified, resulting in loss of insurance coverage and lower ratings. Some insurers that have been able to withstand these financial difficulties have reduced their exposure Florida to landlords in the market by issuing non-renewal notices to existing ones or prohibiting the registration of new businesses in the state.

Two major hurricanes made landfall in the state in 2017 (Category 4 Irma) and 2018 (Category 5 Michael). Three hurricane seasons (2019-2021), however, have been relatively quiet. Florida. Insurers are facing a huge loss of many records because Florida is the site of 79 percent of all homeowner’s insurance claims filed nationwide Florida to Homeowners insurance receives only 9 percent of all US Homeowners property insurance claims, according to National Association of Insurance Commissioners. Floridians For Lawsuit Reform estimates that 130,000 property damage lawsuits will be dismissed in 2022, largely due to Florida to good place to blame.

Florida has one of the most generous attorney fees in the country – sometimes resulting in insurers paying claimant attorney fees higher than awards to policyholders who are the only claimants,” Triple-me Issues briefly explained. “A 2017 State Supreme Court this ruling allows courts to award plaintiffs’ attorneys 2-2.5 times their hourly wages when the courts rule in favor of the plaintiffs. These “accident fee multipliers” can result in attorneys receiving hundreds of thousands of dollars for a simple case.” The homeowner’s insurance provider pays the plaintiff’s costs and damages to the plaintiff, the insured, if the court rules in their favor. of the policyholder.

Triple-me The Issues Brief also outlines the steps taken by unregulated roofing contractors, who ask insured homeowners to sign AOB or instructions to pay contracts, giving the contractor the right to collect payments directly from the insurer and file a lawsuit without it. knowledge or consent of the policyholder. These lawsuits require insurers to pay defense costs in court, where the policyholder is often unaware that the signed AOB form has triggered litigation.

“As insurers fail or withdraw, Opinions of the company Citizens Property Insurance Corp. – the last state-run home insurance – is increasing with business. Citizens had 931,357 active points since June 30, 2022from 638,263 points in June 2021 and 474,630 procedures in June 2020. Citizens could spend enough money $100 million this year on the financial side of the case,” Triple-me Issues Brief was reported.

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