The only way that happens is if FL Legislature fails to deliver any/most of the reforms the Industry is looking for. Assuming that a collapse of the Private market would probably doom their reelection prospects – I’m bullish they will deliver more this time. No R wants a state-backed entity solely competing in a market under their watch (especially at the expense of tax-wary voter bases).
Correct! Look at your homeowners, autos, inland marine policies and see how much you’re paying into the ‘Citizen’s fund’. I know people with 50 year old homes with Citizens that are paying less than 50% than a new home on the standard market with almost the same coverage. Citizens rates need to increase. Middle market people cant afford to pay their own standard home insurance and someone elses too.
November 29, 2022 at 5:02 pm
FL Analyst says:
Like or Dislike:
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Relieved to see the agenda is being played closer to the chest this time around. Less room for the Plaintiff bar to counter reform push by Industry.
Get real, who do you think is crafting the legislation. It is a tug between all the parties that are benefiting from the claims.
The only ones not at the table are the small policy holders.
I’m pretty cynical about reform working out here. Even with the collapse of the HO market inevitable (it is already happening) I doubt enough legislators will have enough courage to do what it takes. Mainly, totally remove attorney’s fees from homeowners claims. Absent that, all other reforms are drops of water in the ocean.
Can’t totally remove attorney’s fees provisions – but fully agree they either need to scrap the litigation multiplier or quit wasting everyone’s time getting everyone’s hopes up.
That is far from the problem. You want rates to go down and less frivolous claims and lawsuits? Triple the attorney fees paid by losing insurers. Carriers have employed underpayment of claim tactics across the board and they exploit them excessively after cats. The average homeowner does not even realize they are knowingly underpaid. Public Adjusters have been turned from a nuisance to a necessity and first party property lawyers are thriving and it is not because they are winning bad or uncovered or inflated cases. The carriers are getting a pass on Florida Fraud statutes and you are paying for it. There was one Chip Merlin, now there are 40 and counting. Coincidence? Hardly. Reform has no shot, they don’t even know the problem how can we even hope they have the solution? Pay more and if you have a legit claim expect and accept less.
Its not just attorney’s fees that are driving up costs. It’s 3rd party adjusters and contractors as well. You should see the over reach by the construction industry for Hurricane Ian claims. Driving up costs of labor to 3 times more than normal. Plus FEMA is behind on adjusting claims making insureds think they need to hire a 3rd party adjuster.
How about charging enough for insurance to match the risk, rather than letting people build in places they shouldn’t by providing cheap insurance? Who has a vested interest in turning a blind eye to damage? Maybe the insurance company trying to avoid paying their bill? After a catastrophe you need labor from other markets. Bringing in labor, temporarily housing that labor, and paying that labor enough to attract them out of their current market all influences the price. It is simply supply and demand, not greedy contractors and 3rd party adjusters as some may suggest. It seems highly inappropriate to simply blame the person who needs their home fixed, the contractor trying to fix it, or the 3rd party trying to get the claim resolved. We all use the same estimating platform, the loss is the loss, so how is there so much “over reach”? It is completely one sided to suggest that the person who owes money for a claim should be the only person deciding what is damaged and what that damage would cost to fix.
Get real, who do you think is crafting the legislation. It is a tug between all the parties that are benefiting from the claims.
The only ones not at the table are the small policy holders.
This insurance crisis occurred over years of trial & error among a select group of contractors and plaintiff attorneys. The harsh reality is that this narrative pitching insurers vs lawyers & roofers distracts Floridians from their role as the ATM’s generating nearly $4B in litigation economy revenues. (nothing self-serving in suggesting higher attorney fees) At 120,000 filed actions, Florida holds a unimaginable 80% U.S. market share of all HO insurance litigation. The question remains who is protecting Floridians? Research from Florida’s Office of Consumer Advocacy suggests as many as 50,000 consumers engaged on litigation against their insurer do not know they are litigants. In the end, a claim dispute cannot happen without a claim. When homeowners simply believe the results of a “free inspection” and initiate a claim without verifying the age & cause of damage, they unknowingly assume the fraud risk. Lawmakers must have the courage to align Florida contingency fee statutes with the other 49 states and outright ban all forms of assignment instruments.
Another 50/50 chance they make it worse.
The only way that happens is if FL Legislature fails to deliver any/most of the reforms the Industry is looking for. Assuming that a collapse of the Private market would probably doom their reelection prospects – I’m bullish they will deliver more this time. No R wants a state-backed entity solely competing in a market under their watch (especially at the expense of tax-wary voter bases).
What expense? Citizens continues to make money even though stuck with riskiest customers in the state.
Expense of tax-payers & everyday consumers – not Citizens.
Correct! Look at your homeowners, autos, inland marine policies and see how much you’re paying into the ‘Citizen’s fund’. I know people with 50 year old homes with Citizens that are paying less than 50% than a new home on the standard market with almost the same coverage. Citizens rates need to increase. Middle market people cant afford to pay their own standard home insurance and someone elses too.
Relieved to see the agenda is being played closer to the chest this time around. Less room for the Plaintiff bar to counter reform push by Industry.
Get real, who do you think is crafting the legislation. It is a tug between all the parties that are benefiting from the claims.
The only ones not at the table are the small policy holders.
I’m pretty cynical about reform working out here. Even with the collapse of the HO market inevitable (it is already happening) I doubt enough legislators will have enough courage to do what it takes. Mainly, totally remove attorney’s fees from homeowners claims. Absent that, all other reforms are drops of water in the ocean.
Can’t totally remove attorney’s fees provisions – but fully agree they either need to scrap the litigation multiplier or quit wasting everyone’s time getting everyone’s hopes up.
That is far from the problem. You want rates to go down and less frivolous claims and lawsuits? Triple the attorney fees paid by losing insurers. Carriers have employed underpayment of claim tactics across the board and they exploit them excessively after cats. The average homeowner does not even realize they are knowingly underpaid. Public Adjusters have been turned from a nuisance to a necessity and first party property lawyers are thriving and it is not because they are winning bad or uncovered or inflated cases. The carriers are getting a pass on Florida Fraud statutes and you are paying for it. There was one Chip Merlin, now there are 40 and counting. Coincidence? Hardly. Reform has no shot, they don’t even know the problem how can we even hope they have the solution? Pay more and if you have a legit claim expect and accept less.
Its not just attorney’s fees that are driving up costs. It’s 3rd party adjusters and contractors as well. You should see the over reach by the construction industry for Hurricane Ian claims. Driving up costs of labor to 3 times more than normal. Plus FEMA is behind on adjusting claims making insureds think they need to hire a 3rd party adjuster.
How about charging enough for insurance to match the risk, rather than letting people build in places they shouldn’t by providing cheap insurance? Who has a vested interest in turning a blind eye to damage? Maybe the insurance company trying to avoid paying their bill? After a catastrophe you need labor from other markets. Bringing in labor, temporarily housing that labor, and paying that labor enough to attract them out of their current market all influences the price. It is simply supply and demand, not greedy contractors and 3rd party adjusters as some may suggest. It seems highly inappropriate to simply blame the person who needs their home fixed, the contractor trying to fix it, or the 3rd party trying to get the claim resolved. We all use the same estimating platform, the loss is the loss, so how is there so much “over reach”? It is completely one sided to suggest that the person who owes money for a claim should be the only person deciding what is damaged and what that damage would cost to fix.
AMEN !!!
It’s going to take them years to move the needle on this issue. Meanwhile, I’m out of FL.
Get real, who do you think is crafting the legislation. It is a tug between all the parties that are benefiting from the claims.
The only ones not at the table are the small policy holders.
This insurance crisis occurred over years of trial & error among a select group of contractors and plaintiff attorneys. The harsh reality is that this narrative pitching insurers vs lawyers & roofers distracts Floridians from their role as the ATM’s generating nearly $4B in litigation economy revenues. (nothing self-serving in suggesting higher attorney fees) At 120,000 filed actions, Florida holds a unimaginable 80% U.S. market share of all HO insurance litigation. The question remains who is protecting Floridians? Research from Florida’s Office of Consumer Advocacy suggests as many as 50,000 consumers engaged on litigation against their insurer do not know they are litigants. In the end, a claim dispute cannot happen without a claim. When homeowners simply believe the results of a “free inspection” and initiate a claim without verifying the age & cause of damage, they unknowingly assume the fraud risk. Lawmakers must have the courage to align Florida contingency fee statutes with the other 49 states and outright ban all forms of assignment instruments.