We’ve already discussed the possibility of insurance rate hikes, but more recent news reports make it seem much more like a certainty. According to industry experts, homeowners could be receiving higher home insurance premiums with less coverage.

It is believed that more than 4 million Florida homeowners are about to get hit by rate hikes and shrinking coverage. Even though we have not been hit by a hurricane in five years, the State’s insurance regulators have already approved $718 million in rate increases.

It is interesting to note that profits for U.S. property and casualty insurers rose 63 percent to $27 billion for the first nine months of 2010 from $16 billion for the same period in 2009. At that same time, insurers’ claims-paying reserves grew by 7 percent to $545 billion as of Sept. 30 from $511 billion at the end of 2009. Yet despite this news, Florida’s insurance companies are seeking rate increases, and Florida’s policy makers are considering passing laws that will make it harder for homeowners to bring claims against their insurance companies.

A spokesperson for the Insurance Information Institute (III) states several factors have led to the come rate hikes. These include an increase in reports and payouts for sinkhole repairs. Also, changes in hurricane mitigation discounts have contributed to the coming hikes. According to the III, Florida is exposed to more catastrophic loss than any other state.

“Our population has grown and the building boom of the past few years put more people and more property in areas of the state that are most vulnerable to hurricane damage and storm surge.” The spokesperson also stated that a single major catastrophe in Florida could lead to losses as high as $10 billion. As a result, insurance companies basically need the hikes in order to account for this possibility.

In respect to sinkholes, Florida law obliges insurers to pay for full replacement cost upfront for sinkholes. 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, and 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 been over developed, according to many leading geologists.

According to the Florida Office of Insurance Regulation, the state-backed Citizens Property Insurance won approval for rate hikes. Citizens justified the rate hikes by stating it needed to become more actuarially sound.
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Before opening our law firm in 2006, our attorneys worked for some of the state’s, and nation’s, largest law firms, and worked representing the insurance companies for years. Our attorneys are now uniquely positioned to use that experience to assist individuals and businesses alike throughout Florida with their insurance claims. As a result, our attorneys are well versed in the impact insurance has on businesses, condominiums, and individuals alike. Our insurance litigation practice group is prepared to tackle your insurance claim.

Given our extensive experience litigating for, and against, insurance companies, our insurance litigation practice group is prepared to provide aggressive, efficient and effective representation on a broad spectrum of insurance claims in Florida for local, national, and international clients. We are prepared to advocate insurance claims at the pre-suit stage, trial, appellate and arbitration levels.

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

Call us today toll free at 1-866-518-2913 or at 305-263-7700.

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.
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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.