Florida’s property insurance crisis has taken a turn for the worse, with some companies now under investigation for allegedly slashing homeowners’ payouts.
The American Policyholder Association, an insurance industry watchdog, said it had obtained evidence from whistleblowers and internal documents indicating how adjusters’ estimates were altered to justify lower payouts after Hurricane Ian.
Legitimate estimates provided by adjusters were “significantly reduced” by 70% to 90%, according to Douglas Quinn, the group’s executive director.
“A lack of arrests and prosecution against those in the insurance industry has created a moral hazard in which ethically compromised claims personnel can cheat Florida consumers and be virtually assured of no consequences,” Quinn told the Orlando Sentinel, referring to the association’s plans to submit its findings to the Department of Financial Services, along with district attorneys in affected counties and even the Florida Department of Law Enforcement.
Governor Ron DeSantis confirmed on Friday that state investigations regarding the matter are already underway.
“So, the reports of people getting short changed or getting unlawfully dropped because someone was looking to make more money, the insurance regulation office is investigating that, the chief financial officer is investigating that,” DeSantis said, via WFLA News Channel 8. “They need to be held accountable and I know that they’re going to be aggressively doing it.”
These investigations come as Florida contends with a troubled property insurance market characterized by skyrocketing rates and carrier insolvencies. The situation has also been exacerbated by extreme weather events that have caused billions of dollars in damages across the state.
Earlier this month, Florida’s Financial Services Commission appointed Michael Yaworsky as the state’s insurance commissioner. He took on the role after serving as interim commissioner since February.
“Florida’s insurance market is one of the largest in the world and plays a vital role in our state,” Yaworsky said of his appointment. “As insurance commissioner, I look forward to ensuring OIR remains steadfast in our commitment to promote a stable and competitive for all Floridians.”
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