10 votes

Inside Florida's property insurance crisis

2 comments

  1. [2]
    Luna
    (edited )
    Link
    I found out about this from this comment, and it seemed surreal. The more I read about it, the crazier it gets. Basically, due to a 2017 Florida supreme court decision, if you sue your insurance...

    I found out about this from this comment, and it seemed surreal. The more I read about it, the crazier it gets.

    Basically, due to a 2017 Florida supreme court decision, if you sue your insurance company over a denied claim (like if a roof repairer intentionally billed your insurance an absurd amount), your attorney can collect 2-2.5x their hourly rate in fees separate from your payout. At that point, the incentive is to milk insurers dry, and, well, they have... 6 have been liquidated, 3 entered liquidation this year, more are ceasing operations in Florda, and those left are dropping policyholders by the boatload and raising rates.

    What's more, the Sunshine State is a standout nationwide. More than 75%, three quarters of all property insurance litigation in the entire country originates in Florida.

    Given how often Florida gets severe storms, this is an orchard ripe for the picking.

    The decision in question was issued on October 19, 2017, WILLIAM JOYCE, et al vs. FEDERATED NATIONAL INSURANCE COMPANY.

    More articles:

    7 votes
    1. rosco
      Link Parent
      If you want a real mind-blower. We subsidize Florida home owners in areas of high flood risk (i.e. a large portion of the state) through FEMA. What's happened is that in areas like Miami where...

      If you want a real mind-blower. We subsidize Florida home owners in areas of high flood risk (i.e. a large portion of the state) through FEMA. What's happened is that in areas like Miami where there are constants floods, insurance will no longer cover those locations so the federal government is stepping in to provide it. I would be sooooo interested to know if this supreme court decision is applicable to these policies as well.

      6 votes