Brian A. Hodgers
Shawn and Kim have lived in their dream home for over 20 years. They noticed that the tile roof was starting to look worn and they asked about a new roof. The cost of the new roof was over $50,000. He decided to forgo getting a new roof because of the money.
A few weeks later, Matt, a local roofing attorney, knocked on their door, telling them he could get a new roof for free from Shawn and Kim’s insurance company. That sounded like a dream. They won’t need $50,000 and get a free roof.
Sounds good, right?
Every day, many people fall victim to the frenzy in which a roofing attorney “takes care of everything,” sends a large claim to the insurance company, and then threatens to file a lawsuit if the company disputes the proposed roof price. If the company does not pay, a few law firms have small firms that file hundreds of lawsuits through the roof, knowing they will win millions in attorney’s fees.
Who is the loser in this case? A common house owner. Every day, all Floridians who are home owners are paying for these free roofs with additional costs that, in some cases, are double what they were last year.
The act of knocking on doors and asking for complaints, so that other people (roofers and lawyers) can make money off of you, the home owner, has ruined everyone in this state. Even if you don’t own a home and rent, homeowners are raising prices because their insurance has gone up.
Changing the mind is that you pay what you need who received a crazy price; therefore, you are owed a refund from the policy. This defeats the purpose of insurance. It means to exist when you have the knowledge of what is called danger.
If your roof is leaking because it’s 15 to 20 years old, that’s normal wear and tear and not a reason to write an insurance policy. Regular repairs must be paid for by the homeowner and they should not initiate an insurance policy to pay for the accident. But then again, the greed of many homeowners who want to get their money back affects all 7.5 million policyholders. It will take all stakeholders to sit down at the table and work together to come up with smart solutions. Neither side is going to get everything they want, but it’s not clear that the direction we’re headed is a dangerous one.
Florida cannot print money as a US state. With a state budget of $ 105 billion, and the Citizens Insurance Company is growing at a very fast rate of 31,000 policies in just one week, with more than $ 330 billion in exposure, Florida is one Group 3 or a major storm away from bankruptcy.
Of course, of the $330 billion shown, the storm should cover the entire country. Not really, considering the Citizens policy is concentrated in Central Florida, extending from South Florida to the Keys. A hurricane that is hitting the southern part of the state could devastate the state of Florida.
As an insurance agent for more than 20 years, I can say that there has never been a worse market for policy holders. That’s a big statement considering we weren’t even close to having this kind of problem after eight hurricanes in 2004 and 2005.
There are insurance companies going out of business left and right, and many other insurance companies have either pulled out of Florida, or temporarily stopped writing new policies.
How did we get here? In terms of property insurance lawsuits, Florida had 116,000 lawsuits in 2021, and no other state had more than 900. Florida has only 8% of all insurance lawsuits filed in the US, yet we have nearly 80% of all cases. US This violence is unsustainable.
It’s easy for people to say that insurance companies are bad; that he has all the money, and he never pays the claims. There are many good insurance companies out there both big and small that get good results. And yes, every now and then a big company makes a mistake, and denies claims. That’s why there are reformers, and lawyers.
But the numbers don’t lie, and the number of claims represented by a lawyer, which is driving the cost, has exceeded the number of insurance companies that make mistakes in other matters.
Brian A. Hodgers is an independent insurance agent with Complete Choice Insurance-Suntree.