Last year, we saw one of the most destructive storms in the history of the state with Hurricane Ian. This year, we are witnessing just how severe the lack of oversight is, in regard to regulating property insurance carriers’ financial integrity as well as making them accountable for their claims handling schemes. If the regulators pursued carrier misbehavior with as much vigor as they do policing attorneys, public adjusters and contractors, we might see a better environment for Florida policyholders.

This is just a small sampling of property insurance related stories that have recently been published:

• How Florida let a top insurer abandon homeowners in their time of greatest need.
• Florida regulators warned of insurance company manipulations years ago.
• Hurricane Ian results in nearly 8k property insurance complaints to the state (abcactionnews.com)
• Home insurance crisis plagues hurricane victims
• Florida intensifies oversight of insurers after they cut disaster estimates
• Examination Under Oath: Payback to property insurance policyholders who won't back down? - WINK News
• Insurance companies face multiple lawsuits after failing to pay for Hurricane Ian repairs - NBC2 News (nbc-2.com)

Do you see a pattern here? Yes, I realize new regulations to police carriers have been recently enacted, but that shouldn’t stop the powers to be from cracking down on obvious injustices while the new regs are put into place. The proactive move to hold Insurance Villages in order to get insurance companies to pay is just further evidence of carriers lack of urgency.  

As reported by national and local news syndicates, the outcry of citizens is fever pitch. Many are leaving the state after selling their homes. Many are stuck in claim limbo paying damage repairs, property taxes and surcharges for property liens because their insurance companies won't pay up. And don’t forget those mortgage payments and ever-increasing insurance premiums for some homes that are uninhabitable.

Impacted citizens and the media are also awaiting Florida’s investigative response to the ongoing revelations about insurance company's preying on policyholders. Florida insurance fraud investigation widens to include earlier hurricanes (wesh.com). That's a problem the GOP-led legislature and Republican Gov. Ron DeSantis have sought to tackle since independent licensed adjusters began disclosing their stories of insurance carrier claims tampering in 2019 – The same year the Office of Insurance reported that 8.6% of property insurance claims in the U.S. were filed in Florida, yet 76.45% of all property insurance litigation in the U.S. occurred in the state. Hmm. Property insurance going up or away for many in brewing crisis | Fox Business

Our firm has also witnessed insurance companies using deceptive tactics against policyholders (even on non-hurricane claims) similar to that being reported in the press and can only imagine how many similar examples of underpayments, claim delays and wrongful denials exist. These instances have deprived Floridians who counted on fair treatment following Hurricanes Michael, Irma, and Matthew. From our view, insurance companies should follow ethical rules and be held accountable when they fail to do so. Isn't that what Florida’s recent insurance reform legislation was all about?  

As more policyholders and adjusters share their horror stories, they align with the insurance malpractices we have seen:

• Management set low claim reserves and keeping at a minimum - Reinsurance
• Management keeps kicking estimates back to us - no explanation.    
• Management intends to send another consultant - stalling it. 
• Management is only approving 50% of the amount requested. Sorry, that's not what I told you.
• Management asks for invoices to be resubmitted - again.
• Management put a stop pay on the last check. They can’t remember which one.
• Management requests more changes and removal of covered items.   
• Management which specific claims are you hearing rumbling of Attorney representation - so they can give special attention.  

It's little wonder why we are seeing seasoned adjusters we deal with quitting due to frustration with the way claims are being handled. Hurricane Ian is getting its fair share of media attention and it’s clear that the status quo is not working.

Insurance industry claim practices are in dire straits. Policyholders are paying more for less coverage and then when they have a legitimate claim are shortchanged on both service and settlements. It’s one thing to raise premium rates. But when a policyholder has a legitimate claim, treat them (the customer) fairly and with respect. Maybe the State needs to appoint an independent auditor or even a task force of industry leading professionals (as CFO Tom Gallagher did in 2004) to scrutinize these unethical and unwarranted practices. Maybe regulators need to be imbedded in the carrier offices much like banking regulators. Maybe regulators need to require higher capital requirements in order to solidify the financial integrity of these carriers and protect the taxpayer.

Do insurance carriers hire IA’s and then don’t train them on their standards?  Or maybe some IA’s standards are higher than certain insurers. Well now the new law is requiring all carriers to have playbooks and claims practices documented and in place. Good luck getting it enforced.