Theclaimers Logo

Florida Politicians are Scrambling To Address A Property Insurance Catastrophe

It’s a slow-motion meltdown that lawmakers have been aware of for years but have failed to address. Property insurance prices in Florida have risen dramatically in recent years. Worse, many insurance businesses have either closed or left the state, leaving homeowners with fewer options.
June 13, 2022
Florida Politician

A tsunami of lawsuits spurred by roofing scams has thrown Florida into a property insurance crisis, forcing hundreds of businesses to close, cancel customers, raise prices, or leave. 

It’s a slow-motion meltdown that lawmakers have been aware of for years but have failed to address. Property insurance prices in Florida have risen dramatically in recent years. Worse, many insurance businesses have either closed or left the state, leaving homeowners with fewer options.

With hurricane season approaching in a few weeks, the situation has reached a breaking point, and lawmakers are hurrying to adopt legislation to avoid a total calamity. People in a state that is routinely pummeled by high winds, hard rains, and hail, and is becoming increasingly vulnerable to climate change, have found it more difficult to defend their homes as a result of the mess. If the state is hit by a significant hurricane, which hasn’t happened since 2018, things might get worse, according to experts.

Last month, Republican Gov. Ron DeSantis acknowledged the emergency when he directed the state Legislature to come up with a remedy before the start of hurricane season on June 1. On Monday, lawmakers will begin their extraordinary session. According to insurers and government authorities, the situation is mostly the result of a plague of roofing frauds, which were aided by loopholes in state legislation and a spate of court judgments that allowed them to flourish.

The Series of Events that Took Place in The Scam

Online Scam

The con goes like this: contractors come knocking on doors, offering to assess the roofs of houses for storm damage. 

Then promise to be able to help homeowners obtain a roof replacement paid by insurance, and they persuade them to give away their rights to file claims on their own. The contractors then make false damage claims with the insurance providers, and when they are denied, they sue. In most cases, insurance companies settle disputed claims for far more than the original claim. In the form of a “contingency fee multiplier,” the majority of that money goes to the contractors’ lawyers. Hundreds of similar lawsuits are filed each year by some lawyers.

Although the homeowner receives a free roof, everyone pays for it at higher rates. Roofers showed up at Andre Hall’s home in St. Johns, offering to assess his roof for damage in December, putting him in the middle of a scam. They claimed to have located some and had him sign a form he didn’t understand that compelled his insurance company to reimburse the roofers. Hall, on the other hand, is fighting back, attempting to prevent the roofers from entering his land, a posture he claims is based on principle.

FedNat Insurance, based in Sunrise, recently revealed that it would cancel 68,000 policies across the state by the end of June, putting thousands of Florida families in jeopardy if you will call it a financial tidal wave of epic proportions. There’s a lot of pointing of fingers when it comes to figuring out how Florida got into this mess. Insurance firms want to blame consumers, while consumers argue the mishandling of claims by insurance companies is to blame for the problem. 

They Dismissed Legislation Sessions

Legislation

We’re in this situation because Florida’s leaders have squandered much of their time and spent the rest doing favors for big firms instead of using annual legislative sessions to address actual issues impacting Floridians.

In 2019 and 2021, lawmakers passed legislation aimed at putting a stop to the schemes. However, according to state officials, the insurance industry’s net losses have increased in each of the last five years, topping $1 billion in 2021. Since 2021, eight insurance businesses in Florida have closed their doors, including three in the last three months. 

Those that remain have requested premium increases ranging from 15% to 96% and have grown more discriminating about who they would insure; some are requiring homeowners to rebuild their roofs in order to obtain a new policy. Others are canceling coverage; one company just announced the cancellation of 56,000 policies.

While Florida residents watched as their property insurance premiums skyrocketed and their policies were canceled, lawmakers were more concerned with gaining cheap political points and waging frivolous culture war disputes. When Congress finally enacted insurance legislation, it was a gift to insurance companies rather than a benefit to customers. The new law has dramatically limited Floridians’ access to the courts, increased insurers’ ability to deny and underpay claims, and increased the number of hoops that Florida homeowners must jump through.

Worst of all suggested modifications that would have protected policyholders by capping rate increases were knocked down by lawmakers. Ironically, a recent study by McLaughlin and Associates of prospective Florida voters revealed that voters’ majority support measures that cut prices, hold insurance firms accountable, and do not limit customer rights.

Do you suspect that someone had scammed you?

If you have any suspicion of a scam or phishing attack, then you can rely on TheClaimers to help you with protection, mitigation, and fund recovery. You will feel safe knowing that experts with years of experience will be guiding you!

89 Percent of People Favor Mandating More Financial Openness

Nearly 89 percent of people favor mandating more financial openness from insurance firms when given a list of alternative suggestions to address rising premiums — by far the most popular plan and one on which voters of all stripes and parties agree.

The leaders have lost sight of their mission, which is to improve the lives of their constituents. Floridians are now paying the price for lack of protection, fewer rights, and no possibility of decreasing prices. A special legislative session is called to meet an unexpected emergency. 

Our current crisis, on the other hand, was anticipated, avoidable, and entirely our fault. Unfortunately, we have no choice but to trust the same people who got us into this situation to bring us out of it, at least until November.

The Claimers advise you to remain vigilant against different kinds of scam. Visit our news page for more updates and guides.

Sources

Find Related News

Subscribe To Our Newsletter

Scam Recovery Resources

What Can Scammers Do with Your National Insurance Number & Personal Information?

This week, a number of police departments have tweeted alerts to the public in response to an increase in scammers posing as cops. Never give up your bank account information or National Insurance number over the phone to the police. The National Insurance scam follows a string of fraud attempts made on the populace while COVID-19 was in lockdown. A Royal Mail scam and a banking scam from the previous month are among these schemes.

Read More »

FundTrace is committed to upholding the journalistic standards online, including accuracy. With our news reporting, our policy is to review each issue on a case by case basis, immediately upon becoming aware of a potential error or need for clarification, and to resolve it as quickly as possible.

do you need help?

A lot of those who contact us have questions and concerns about their personal and business data being compromised. We aim to arm you with the legal and technical know-how in the fight against scams. Also, we will be able to refer you to top scam recovery agencies.

Please fill up the form. Rest assured that our support team will get in touch with you

Share this article
Facebook
Twitter
LinkedIn
Leave a comment
Scan the code