August 10, 2021 | Legal Alerts
The Florida property insurance market is teetering on the edge of collapse just as the state is starting to recover from the COVID-19 pandemic. After years of increased litigation and fraudulent claims, the majority of insurance companies in the state have had to raise their rates to consumers, tighten up their underwriting guidelines, deny coverage for new applicants, and stop renewal of non-profitable businesses just to stay afloat. There has been an increase in consumers and businesses seeking the state’s property insurance, Citizens, as its rates have only increased slightly as a result of statutory requirements. Even without a major storm in 2020, insurers lost $1.5 billion from water damage and roof fraud as well as costly litigation awards. Insurance companies are now feeling hopeful as Bill 76, recently passed by the Florida Legislature on April 30, 2021, was signed by Governor Ron DeSantis.
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