Florida’s Property Insurance Space is Riddled with Lawsuit Abuse

Dear Florida Jolt Editor,

Florida has a lawsuit abuse problem in the property insurance space, and the numbers highlight the overwhelming magnitude of the situation. The Florida Office of Insurance Regulation reported that while Florida accounts for only eight percent of homeowners insurance claims in the U.S., it has 76 percent of homeowners insurance lawsuits. Moreover, between 2013 and 2020, Florida’s property insurers paid out $15 billion in claims, but only eight percent actually went to consumers – a shocking 71 percent was paid to attorneys.

Subscribe to the Florida Jolt Newsletter!

Furthermore, skyrocketing inflation and record-breaking losses from natural disasters are straining the system and adding to an increasingly volatile marketplace. As a result, a growing number of insurers are discontinuing coverage in Florida, leaving many homeowners scrambling to find new coverage with limited options available.

In many instances, these homeowners find that their only coverage option is with the state’s insurer of last resort, Citizens Property Insurance. However, there is serious concern that Citizens may not have the financial resources to cover potential catastrophic losses, which would leave all Florida insurance policyholders on the hook for the rest of the bill.

This upcoming Special Session, the Florida Legislature needs to pass meaningful property insurance reforms to protect Florida homeowners, help lower costs, and bring competition back to the Florida marketplace.

 

David Biddle

Trenton, FL


If you want to share your thoughts and opinions with your fellow Floridians, you can submit your letter to the editor at [email protected]

Contact information is essential to confirm your identity. Your personal contact information will be kept confidential. We will publish your name and town.

We do not guarantee that we will publish your letter and will not notify you if we do not.

Florida Jolt may edit your letter for punctuation and clarity, but we will not change the intent.

Jolt Media, Inc. reserves the right to refuse any letter for any reason.

Comments
Share via
Send this to a friend