Florida Insurance Claim Lawyer Blog

The First District Court of Appeal, one of the State's Appellate Courts, located in Tallahassee, delivered some very good news to both Florida policyholders and public adjusters. The First District Court of Appeal found a law that restricted public adjusters to be unconstitutional.

In 2008, Florida passed a law that prohibited public adjusters from initiating contact directly or indirectly with policyholders during the first 48 hours after an event that triggers a claim. The law was challenged in a law suit by Frederick Kortum, a public adjuster in Oviedo. He filed suit against the Chief Financial Officer Alex Sink and the Department of Financial Services.

Kortum made the argument that the first 48 hours are of vital importance because policyholders may make decisions that affect how much they could receive from an insurer. For example, a policyholder may not properly preserve evidence or find all damages. The First DCA referenced a Pennsylvania Supreme Court case which argued that these first two days are crucial because a policyholder may not stay at a severely damaged property and move to another location, which could lead to not receiving information regarding hiring their own adjuster.

Initially, a trial court found the law constitutional. The appellate court stated in its opinion that the law "unambiguously bans all solicitation for 48 hours." The court found the restriction to violate the commercial free speech rights of public adjusters.

In a statement released by The Florida Association of Public Insurance Adjusters, the organization commended Kortum for filing the suit. "His efforts, and that of the legal team, have made it easier for Florida consumers to get the assistance they need when dealing with insurance losses."

This ruling is no doubt a major victory for all of Florida's policy holders, and public adjusters. It should be noted that Florida's public adjusters have come under increased scrutiny in recent years. However, public adjusters assist many Florida homeowners in securing a maximum amount of recovery for their loss.

Continue reading "Appellate Court Ruling Renders Florida's Policy Holders and Public Adjusters Victorious" »

Wishing you and your family all the best during this holiday season, as well as peace and prosperity in the New Year.

In an effort to reduce costs for insurance companies, the State senate is pushing forward a bill which addresses sinkhole damage claims, as well as other claims.

The new bill is expected to contain many of the provisions found in a bill which was vetoed by Governor Charlie Crist. One of these provisions includes a time limit on filing claims after a hurricane and one which will make the rate approval process easier to navigate. It is also expected to address other cost drivers such as fraud.

The new bill will include provisions targeted at reducing what insurance companies are paying out for sinkhole claims. The insurance industry claims that many sinkhole claims are not legitimate. However, part of the reason for the surge in sinkhole claims is due in large part to the recent explosion in real estate development throughout Florida, especially in South Florida. Over development has left the ground susceptible to sinkholes. Plus, while sinkholes occur in other U.S. states, Florida is more prone to sinkhole related problems because of underground limestone that dissolves under certain conditions, especially in areas that have never been over developed, according to many leading geologists.

The state Senate's Banking and Insurance Committee is expected to release an interim study on the state's sinkhole insurance climate. Between 2006 and 2010, $2 billion in claims have been paid out. This payout amount nears the amount paid out in a small hurricane.

Insurance companies are concerned about these costs due to the large number of claims for foundation cracks that are attributed to sinkholes. However, the insurance industry states that these claims may not be sinkhole related. Because insurance companies contend that they cannot often rule out that the damage was caused by a sinkhole, especially in light of all the over development that has taken place over the past few years, tens of thousands of dollars are being paid out by the insurance companies to resolve these claims.

Our Miami insurance dispute lawyers handle sinkhole claims for homeowners. Our attorneys represented insurance companies before 2006, when we opened a firm dedicated to fighting for the rights of consumers. We understand how insurance companies work. And we have the knowledge and experience necessary to represent homeowners in disputes over an insurance claim.

The new bill is expected to contain language which will define structural damage from a sinkhole. It is also expected to contain language on what is and what is not covered by insurance policies. Governor-elect Rick Scott is expected to support this bill which may further regulate public adjusters.

Continue reading "Insurance Companies are Gearing Up to Push Through Legislation That Will Result in Insurance Companies Paying Florida Homeowners Less Money on Sinkhole Claims and Making it Harder for Homeowners to Bring a Claim Against Their Insurance Company" »

Homeowners who have Citizens Property Insurance may have to prepare for a hike in insurance rates. According to a press release, outgoing Florida Chief Financial Officer Alex Sink said the inequity in homeowners' insurance rates must be addressed. Currently, Florida residents are subsidizing those who own homes in coastal areas. Notwithstanding Sink's views, a return to sound actuarial levels for Citizens may signal a rate hike.

CFO Sink stated that Citizens Property Insurance's actuarial studies show there are homeowners out there whose rates are being subsidized 40% to 50% by other Floridians. According to CFO Alex Sink, that's the inequity that has to be addressed going forward in some kind of measured way that does get to the point that the people who are living in places that are riskiest are bearing more of their share of the risk.

In light of the current economic environment, the state will have a problem facing this issue because it must strike a balance between consumers' wallets and reducing Florida's financial risk if we are hit by a hurricane.

Gov. Charlie Crist vetoed a bill that would have capped a rate adjustments for reinsurance costs, financing products, and an inflation trend fact. Governor-elect Rick Scott has promised to return Citizens to actuarially sound levels and to end its reliance on assessments to pay claims following a major disaster.

The top five writers of homeowners multiperil insurance in Florida in 2009 were: State Farm Group with a 15.09% market share; Citizens Property Insurance Corp., with 13.44%; Universal Insurance Holdings Group with 8.62%; USAA Group with 5.9%, and St. Johns Insurance Co. Inc. with 4.59%.

Continue reading "Insurance Companies Are Gearing up to Seek Rate Increase Despite the Fact that Florida Has Not Been Stricken by a Major Storm in Five Years" »

A new property insurance bill is in the works in Florida. Insurers are hoping the new bill will gain the support of new Governor Rick Scott. The new bill could be taken up by the state legislators in early 2011.

Earlier this year, the insurance industry supported a bill which addressed many non-hurricane-related cost drivers for insurers. This bill overwhelmingly passed through the state House and Senate, but was ultimately vetoed by the former governor.

Governor Crist vetoed the bill despite a plea from Insurance Commissioner Kevin McCarty that he sign the bill into law to cut down on some of the expenses that insurers say is making it hard for them to do business in Florida. Crist, however, called the legislation "anti-consumer" and said it was wrong to allow for rate hikes during tough economic times.

The vetoed bill changed the time period to file claims resulting from hurricane damage. Rather than five years, the bill proposed a 3 year time limit. It proposed regulation of public adjusters. It also gave the Office of Insurance Regulation more oversight over affiliated reinsurers and addressed expedited filings for the cost of reinsurance.

The bill that passed this past year did not address sinkhole claims, which is becoming a bigger and bigger concern for carriers. The final bill also did not include a change in how much in replacement costs insurers must initially pay for personal items. There will likely be a push to address both those issues in a new bill.

Although we haven't been hit by a substantial hurricane in the last 5 years, nearly 40 percent of property insurers posted surplus losses the first six months of this year. Almost 60 percent of insurers reported underwriting losses.

There is also an initiative specific to Citizens, the State's insurance company which was created to fill the void created by insurers who stopped insuring homes in Florida. The initiative supposedly proposes changes which would make it harder for residents to get coverage from the last-resort insurer. Citizens has grown to become the second-largest property writer in the State. It has an 11.4 percent market share. State Farm is the largest with a 12.8 percent market share.

Continue reading "Florida Legislators Will Tackle Major Property Insurance Reform During the 2011 Legislative Session" »

The 2010 hurricane season has officially come to an end with many breathing a sigh of relief. Fortunately, South Florida has gone through another hurricane season where we have not been hit by a storm.

By the numbers, however, this was a monstrous season. Nineteen (19) storms were named this past season, which ranks as the third busiest season on record. Fortunately, the mainland US was able to escape this busy season. The mainland was not hit by a major hurricane strike for the fifth straight year. As South Floridians, we're used to braving powerful storms, but this year we were hardly affected by Tropical Storms Bonnie and Nicole.

According to a spokesperson from the National Hurricane Center, South Florida has never gone more than five years without a major hurricane strike. If South Florida does not get hit by a storm next year, it would set a record. However, we shouldn't bet on setting this record.

This streak of not being hit by storms coincides with a surge in storms. Since 1995, the La Nina weather pattern and warm Atlantic Ocean temperatures have sparked a string of very active seasons. As a result, the season was still deadly, especially in the Caribbean. A hurricane caused widespread flooding and killed at least 20 there and 14 more in St. Lucia. Belize, Mexico, Cuba and Honduras were also struck by storms or hurricanes.

The only parts of the mainland which were affected by any sort of storm were Texas and North Carolina. Tropical Storm Hermine triggered flooding and was blamed for six deaths. Hurricane Earl only brushed the East Coast, but it caused massive flooding in North Carolina.

Our Miami insurance dispute lawyers handle insurance claims for homeowners. Our attorneys represented insurance companies before 2006, when we opened a firm dedicated to fighting for the rights of consumers. We understand how insurance companies work. And we have the knowledge and experience necessary to represent homeowners in disputes over an insurance claim.

If you are facing a dispute over an insurance claim in Florida, contact Alvarez & Barbara, LLP toll free at 866-518-2913 for a free and confidential consultation to discuss your rights.