Skip to main content
Blog
Florida’s insurance crisis has become one of the most pressing issues for homeowners, business owners, and policyholders in general across the state. From record-high premiums to a shrinking pool of available insurers, residents face mounting challenges when it comes to protecting their properties and recovering from losses.
Our Florida insurance claims lawyers at The Morgan Law Group understand how these issues directly affect insurance companies, individuals, and families. With offices in Coral Gables, Orlando, Tampa, Naples, Panama City, and Pensacola, our team remains dedicated to representing policyholders and standing up for their rights amid Florida’s insurance problem.
Understanding the Insurance Crisis in Florida
Florida’s insurance problem did not arise overnight, it is the result of years of mounting pressures, both economic and legislative. According to a recent analysis by The Zebra, Florida policyholders now pay some of the highest homeowners insurance premiums in the country, with rates nearly four times the national average. This steep increase is not only frustrating for consumers but also unsustainable for many families trying to protect their homes and assets.
Several major insurers have left the Florida market or limited their coverage, leaving policyholders with fewer choices and higher costs. In many cases, those who remain face stricter requirements, higher deductibles, and more exclusions.
Understanding the underlying causes of this insurance problem in Florida is the first step toward finding solutions and ensuring fair outcomes for policyholders who need to file Florida insurance claims.
Contributing Factors to Florida’s Insurance Problem
A variety of factors have converged to create the current insurance problem in Florida, making it increasingly difficult for residents to find affordable, comprehensive coverage.
Catastrophic Weather Events
Florida’s unique geography makes it particularly vulnerable to hurricanes, tropical storms, and flooding. In 2022 alone, Hurricane Ian caused an estimated $112.9 billion in damage, placing immense financial strain on insurance companies and triggering a surge in insurance claims in Florida. The repeated risk of catastrophic losses forces insurers to raise premiums or exit the market entirely.
Litigation and Assignment of Benefits Abuse
Florida has earned a reputation for having a high volume of insurance litigation. The state accounted for over 76% of all insurance lawsuits nationwide in recent years, even though it holds just 8% of the country’s homeowners insurance policies.
Much of this litigation stems from the abuse of assignment of benefits (AOB), a process in which policyholders sign over their insurance benefits to contractors or third parties, who then pursue claims, sometimes inflated, against the insurer.
Fraud and Questionable Claims
Fraudulent and exaggerated insurance claims have also fueled Florida’s insurance crisis. Unscrupulous actors may submit claims for damages that did not occur, overstate the extent of real damage, or conspire with third parties to inflate repair costs. This drives up costs for insurers, leading to higher premiums and reduced availability of coverage for everyone else.
Reinsurance Challenges
Reinsurance, which is essentially insurance for insurers, plays a critical role in Florida’s property insurance market. As catastrophic weather events increase in frequency and severity, reinsurance costs rise. This increase is passed along to primary insurers and, ultimately, to policyholders.
These amalgamations of contributing factors have made it increasingly difficult for both insurers and policyholders, laying the groundwork for the ongoing insurance problem in Florida and prompting urgent calls for change.
Impact of the Insurance Problem on Policyholders in Florida
The insurance problem in Florida is not just a headline – it has direct, day-to-day impacts on families and businesses throughout the state.
Rising Premiums and Deductibles
Many Floridians have seen their insurance premiums soar. Deductibles have also risen, especially for hurricane coverage, forcing policyholders to shoulder more of the financial burden when disaster strikes.
Loss of Coverage and Fewer Choices
As insurers leave Florida or become insolvent, policyholders are left scrambling for alternative coverage. Many are forced to turn to Citizens Property Insurance Corporation, the state-run insurer of last resort, which now covers more than the expected number of policies. Fewer choices can mean less favorable policy terms and a diminished ability to shop for better rates or broader protection.
Delays and Denials of Claims
With an increase in insurance claims in Florida, companies face greater pressure to manage large volumes of paperwork and investigations. This can result in slower processing times, more frequent denials, or undervalued settlements, leaving policyholders frustrated and financially strained as they attempt to rebuild their lives after a loss.
Litigation and the Burden on the Courts
The surge in insurance-related lawsuits has overwhelmed Florida’s court system and contributed to longer wait times for resolution. For many policyholders, this means prolonged uncertainty and additional legal expenses.
The effects of Florida’s insurance crisis are felt directly by those who need coverage the most, making it clear that real solutions are urgently needed to protect policyholders.
Florida’s Legislative Reform to Solve Its Insurance Crisis
Recognizing the urgent need to stabilize the market and protect policyholders, Florida lawmakers have enacted a series of legislative reforms designed to address the state’s insurance crisis.
Some of the most impactful measures include:
Reducing the Deadline for Filing Claims
In 2022, Florida approved significant changes to the property insurance system. One of the most notable reforms was shortening the window for filing property insurance claims to 1 year. While this change aims to limit fraudulent or exaggerated claims, it also places additional pressure on policyholders to act quickly and ensure their documentation is in order after suffering property damage.
Restricting Attorney Fees in Insurance Claims Cases
Senate Bill 2D, passed in 2022, seeks to address excessive litigation costs by restricting the contingency fees that attorneys can charge for representing clients in property insurance claims cases. The intention is to discourage unnecessary lawsuits while still preserving the rights of policyholders to pursue legitimate claims with the help of an insurance claims lawyer in Florida.
Increasing Transparency in Claims Denials
Senate Bill 2D also requires home insurance companies to provide greater transparency when denying claims, ensuring that policyholders receive clear explanations and timely responses. This reform helps to reduce confusion, support fair outcomes, and reinforce trust between insurers and the communities they serve.
While these reforms aim to restore stability and protect policyholders, the ongoing changes highlight the importance of understanding your rights and options as policyholders under Florida insurance law.
Consulting a Property Insurance Claim Lawyer in Florida Becomes More Significant
With the evolving legal landscape, changing deadlines, and increasing complexity of insurance claims in Florida, consulting with an experienced insurance claims lawyer in Florida has never been more important. Legal professionals play a vital role in advocating for policyholders, ensuring that their rights are protected, and helping them recover fair compensation after suffering property damage or loss.
Policyholders facing claim denials, underpayments, or delays can benefit from a Florida insurance claims lawyer who understands both the nuances of state law and the practical realities of dealing with insurance companies. From reviewing policy documents to negotiating settlements and representing clients in court, insurance claims lawyers in Florida provide the guidance and advocacy needed to achieve the best possible outcomes.
Whether a policyholder is dealing with hurricane damage, fire, theft, or another covered event, an attorney can help cut through the red tape, clarify confusing policy language, and fight for the compensation clients deserve. This support is especially crucial now, as insurers and the state implement new rules and procedures that could affect how and when claims are filed.
Book Your Free Consultation with The Morgan Law Group Today
Florida’s insurance crisis continues to present serious challenges for policyholders across the state. Rising premiums, limited coverage options, and changes in the law make it more important than ever for Floridians to seek out knowledgeable representation when dealing with insurance claims in Florida.
If you are struggling with a denied, delayed, or underpaid claim, working with an experienced Florida insurance claims lawyer can help protect your interests and ensure you receive the benefits you’re entitled to under your policy. The Morgan Law Group is dedicated to standing by policyholders in Coral Gables, Orlando, Tampa, Naples, Panama City, and Pensacola.
If you have questions or concerns about your insurance policy or need help with your claim, call us today at (866) 709-2749 or contact us using our online form to schedule a free consultation.
