Citizens has changed the coverage in their policies for non-weather water losses. Now the limit is $10,000 unless you use one of their managed repair companies. Unfortunately, AOB abuse and the resulting spike in litigation have prompted these restrictions further putting the insured at risk and lessening the value of their coverage. Keep in mind that there will still be older policies out there that have not changed based on renewal dates. But going forward be aware of this limit for water losses with Citizens.

Also note that Citizens aggressively pursues questionable water losses. If you are a policyholder, make sure your claim is legit and don’t be pushed into a claim by an overly aggressive restoration company or public adjuster.

https://www.citizensfla.com/documents/20702/10091213/20190612+08B+SIU+Cases+of+Interest.pdf/dfac956d-e86f-4fd0-92d6-96081d69ed2f

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Make no mistake about it, the assignment of benefits controversy as evidenced by its reported abuse in the property insurance arena in the last decade has to have been one of the top scams I have witnessed in my 46-year career. And to top it off, it was all legal, albeit I would guess at times a bitter pill to swallow for some of those engaged in the activity, but what the heck, it was clearly profitable.

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The following is an insurance claim question we answered for a policyholder through the United Policyholders Ask an Expert Forum. 
Q. I live in the path of Irma in Florida and suffered damage to my property. Since the storm and never before, there has been tons of articles in the news, social media and TV commercials playing here in Florida warning consumers about signing Assignment of Benefits agreements with contractors because you'll get ripped off and make a mistake. I have a contractor that I've used before and known for years that says it's been an accepted practice for decades for emergency services. Are the insurance companies just trying to save money? Please explain detail because it seems like a big coordinated PR push from numerous insurance companies saying basically the exact same thing. Thank you for your help!!

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There were a number of articles over the course of the last few weeks that focused my attention back to the water peril.  Spring storms in the middle section of the country with the severe floods that always seem to follow; global warming issues being reported almost daily with the threat of rising sea levels; and then this recent article, Flood recovery meeting set in White Sulphur Springs  from The Herald-Dispatch in West Virginia, that announced meetings with various officials to try and provide updates to the folks in southern West Virginia who were affected by last year’s floods in the mountain state. 

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In case you missed it, The Wall Street Journal published March 15, 2017 had an article in the editorial section titled “Florida’s Trial Bar Hurricane.” I think most folks who are regular readers of WSJ would agree that the publication is no friend of plaintiff lawyers, so at least we know they are prejudiced to some extent and thus know where they are coming from. But in this case, I see no prejudice but instead good reporting. They make some excellent points, which seemingly are backed up by facts and figures even if they are from the carrier’s side. In my opinion this editorial piece is a good analysis of Florida’s current AOB problem, which is currently being debated in the 2017 Florida Legislative session.

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After each Wind Conference I am always amazed at the attendance level, value and depth of knowledge brought by the professionals drawn to this annual event. This year was no exception. There is an old saying that 90% of success is just showing up. That old saying certainty applies to the 18^th Annual Windstorm Insurance Network Conference.

The last attendance number I heard was that over 1,065 professionals from all over the United States traveled to Orlando, Florida to learn, network, and yes, do a little partying after hours. Make no mistake about it; the folks who taught and those who attended the various workshops are the movers and shakers in the property insurance claims industry. These are folks who for the most part control the claim process and ultimately the money that will be paid out to policyholders when a covered Wind Cat wind loss occurs.

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“Well, I’ll be damned!”

These were the first words that came out of my mouth when I read an article reporting on a speech that Chief Financial Officer Jeff Atwater gave at a recent insurance conference attended by Florida property insurance executives. Then another “I’ll be damned” came out when I read an internet posting of efforts being made by the Florida’s new Insurance Commissioner to crack down on Assignment of Benefits a.k.a. AOB abuse and new legislation being prepared for this year’s legislative session which convenes in March.
 
But first some background on what prompted my shock and awe.  

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An article in the 2015 autumn edition of the Marshall University Magazine (my alma mater) resonated with me in the context of insurance losses. In theory there should not be any winners or losers when it comes to paying for an insured policyholder’s claim. The insurance company is supposed to indemnify their insured or make them whole, as in putting them back in the place they were before the loss.
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When involved with complex insurance claims (believe me, nowadays with all these new forms and restrictions, they are all complex and controversial), the policy language and the facts of the loss all must be taken into account to apply them to the coverage in order to get the correct payment to the policyholder.  But this may only be the beginning of what you need to know. Other issues face the adjuster which may be outside of your typical daily sphere of experience and knowledge.
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I read with a great deal of interest comments that were made by the big chiefs at a hearing held by the Office of Insurance Regulation in Tallahassee concerning the rate request Citizens Insurance Company was asking for in the South Florida market. In my view the back-and-forth discussion that took place on August 25 is newsworthy as are some of the back-story items not covered or published. Here is a link from the Insurance Journal that reported on the August 25^th hearing. 

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