A brand new report, 14 Florida Insurers Closed Over Half of Home-owner Harm Claims with Zero Fee in 2024, 1 has revealed that 14 Florida insurers closed over half of house owner injury claims with out making any fee in 2024. For these of us who intently comply with Florida’s insurance coverage market, this headline is alarming however, sadly, not stunning. Householders who’ve dutifully paid their premiums count on assist when catastrophe strikes, but a rising quantity are discovering themselves left with out the help they want.
At first look, these numbers paint a bleak image. They counsel a system the place policyholders are compelled to navigate the tough aftermath of a loss solely to have their claims denied or closed with out compensation. In lots of instances, these owners face vital out-of-pocket bills or are left with out the means to restore or rebuild. The emotional and monetary toll is substantial, significantly in a state the place pure disasters are a reality of life.
Nonetheless, to have a frank and balanced dialogue about this concern, we should additionally acknowledge that not each “zero-payment” declare tells a narrative of injustice. As I famous in a earlier publish, A Frank Dialogue About Florida’s Insurance coverage Disaster, Together with Admissions About Why Present Claims Statistics Do Not Point out the Sky Is Falling, a few of these statistics could also be skewed as a result of flood injury is just not coated beneath commonplace property insurance coverage insurance policies. Householders who expertise flooding however file claims beneath their property insurance coverage would possibly understandably be denied as a result of that kind of loss falls outdoors the coverage’s protection. In such instances, the insurer’s palms are tied, despite the fact that the denial feels deeply unfair to the house owner.
Nonetheless, the flood exclusion alone doesn’t clarify why so many claims throughout so many firms are closed with out fee. It might be irresponsible to dismiss this knowledge as merely a technical anomaly. The broader drawback is that Florida’s insurance coverage market has turn out to be more and more hostile to policyholders. Insurers, pressured by mounting losses and regulatory shifts, are sometimes extra targeted on managing their danger than fulfilling their guarantees. Whereas combating fraud and sustaining monetary stability are legit targets, the pendulum appears to have swung too far in opposition to the pursuits of customers.
When greater than half of claims are closed with out fee, it displays a severe imbalance within the market. Belief within the insurance coverage system erodes when paying prospects are routinely denied assist in their occasions of want. We can’t afford to normalize this pattern or excuse it away with statistics. Actual persons are being damage.
Florida’s insurance coverage disaster is complicated, and there aren’t any straightforward fixes. Insurers are working in a difficult atmosphere, however policyholders shouldn’t be made to bear the brunt of that actuality alone. As we proceed to debate options, we should be sure that the voices of house owners — the very individuals insurance coverage is supposed to guard — are usually not misplaced within the dialog. Zero-payment claims are usually not simply numbers; they’re a symptom of a deeper drawback that calls for pressing and sincere consideration.
Thought For The Day
“Equity is just not an angle. It’s knowledgeable ability that should be developed and exercised.”
— Brit Hume
1 14 Florida Insurers Closed Over Half of Home-owner Harm Claims with Zero Fee in 2024, Weiss Rankings, Apr. 3, 2025.
