Florida Home Insurance 2022

Florida home insurance has always been complex due to the state's high risk of storm damage. But the incidents of fraudulent roofing claims have pushed the market to the brink of collapse.

The problem may not stay in Florida either. If other high risk states like Louisiana and California see an increase in insurance fraud, those markets could begin to degrade as well. There is hope, though, as laws are passed that could help curb scams and some carriers take a different approach to insuring homes in the Sunshine State.

But will the solution come soon enough? The biggest issue right now in Florida is home insurance fraud driven by fraudulent roofing claims. A recent proclamation from the Office of Governor Ron DeSantis notes that although Florida only accounts for 9% of the country's home insurance claims, and Florida has 79% of the country's home insurance lawsuits. Many of these lawsuits are fraudulent.

Commerce, roofers canvass neighborhoods and offer inspections to unsuspecting homeowners. These contractors inevitably find damage and often promise a free roof to the homeowner. Claiming that they can have the home insurance deductible. Homeowners are pressured to sign an assignment of benefits form, giving the contractors a right to file an insurance claim on their behalf. And third of all, a claim adjuster from the insurance company inspects the alleged damage. The adjuster either finds no damage or far more minimal damage than the contractor found, and the claim payout is less than what the contractor demanded. Then the contractor brings legal action against the insurance company demanding a claim payout for the contractor's original quote.

Remember, the homeowner signed the benefit of the policy to the contractor so the contract doesn't need the homeowner's permission to do this. And third of all, a claim adjuster from the insurance company inspects the alleged damage. The adjuster either finds no damage or far more minimal damage than the contractor found, and the claim payout is less than what the contractor demanded. Then the contractor brings legal action against the insurance company demanding a claim payout for the contractor's original quote. Remember, the homeowner signed the benefit of the policy to the contractor so the contract doesn't need the homeowner's permission to do this. The insurance company now has a choice. It can pay the legal costs of fighting the lawsuit or pay the cost to settle out of court. Either way, the insurance company loses money due to the legal action. This is a major problem here in Florida. And must be fixed. There are things that are happening now in regards to helping homeowners deal with what is going on right now. But we must keep a keen observation of what's going on in order to make sure that we are protected as residents here in Florida.

What's happening now is people's insurance is being dropped, and it is a challenge for anybody with a roof that's over ten years old to get insurance. So this is a problem. If you have any questions, please let us know. We'd be more than happy to introduce you to a competent insurance company that could be of value to you, but just know that in 2022, home insurance is about to change.