A brand new report, 14 Florida Insurers Closed Over Half of House owner Harm Claims with Zero Cost in 2024, 1 has revealed that 14 Florida insurers closed over half of house owner harm claims with out making any cost in 2024. For these of us who intently comply with Florida’s insurance coverage market, this headline is alarming however, sadly, not stunning. Owners who’ve dutifully paid their premiums count on assist when catastrophe strikes, but a rising quantity are discovering themselves left with out the assist 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 truth of life.
Nevertheless, to have a frank and balanced dialogue about this problem, we should additionally acknowledge that not each “zero-payment” declare tells a narrative of injustice. As I famous in a earlier put up, 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 harm is just not lined underneath normal property insurance coverage insurance policies. Owners who expertise flooding however file claims underneath their property insurance coverage may 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, regardless 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 cost. It might be irresponsible to dismiss this information as merely a technical anomaly. The broader downside 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 centered on managing their threat than fulfilling their guarantees. Whereas combating fraud and sustaining monetary stability are official objectives, 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 cost, it displays a critical 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 individuals are being damage.
Florida’s insurance coverage disaster is complicated, and there are not any straightforward fixes. Insurers are working in a difficult surroundings, 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 folks insurance coverage is supposed to guard — will not be misplaced within the dialog. Zero-payment claims will not be simply numbers; they’re a symptom of a deeper downside that calls for pressing and trustworthy consideration.
Thought For The Day
“Equity is just not an perspective. It’s knowledgeable talent that have to be developed and exercised.”
— Brit Hume
1 14 Florida Insurers Closed Over Half of House owner Harm Claims with Zero Cost in 2024, Weiss Rankings, Apr. 3, 2025.
