A statistic that made headlines in early April in regards to Florida’s insurance crisis may be incorrect in the context it was applied, according to one expert. The report that concluded “Florida homeowners file 76% of property insurance lawsuits in the U.S.” was done by the Florida Office of Insurance Regulation and sent to legislatures on April 2 – just five days before lawmakers voted and passed Senate Bill 76.
Now experts are weighing in and saying not all of the data was included in the report, nor was context provided on the interpretation of their findings. The ramifications of this are huge for policyholders who will likely feel the impact of this legislation for years to come.
Insurance Crisis Report Completed By FL Depart Of Insurance
Two controversial bills are in session that will impact property damage policies across the state: SB76 and HB305. Both aim to provide relief to the Florida insurance market by limiting coverage and reducing policyholder rights.
HB305 specifically aims to reduce property damage claim litigation by reducing attorney fees and lowering the statute of limitations. David Altmaier, who serves as the Insurance Commissioner in Florida, drafted a report on the Florida insurance market and sent it to lawmakers in early February to prepare for debates on House Bill 305.
Inside this report, Altmaier claims that during 2019 Florida homeowners were responsible for 76% of all property insurance lawsuits in the country. The report also said state residents filed just 8% of all property insurance claims in the nation that year.
This is a startling statistic and proves what lawmakers have been saying about the “insurance crisis”, right? Wrong.
What’s Really Happening In FL?
There are some pretty big missing pieces to Almaier’s initial report including:
- Altmaier failed to mention at least 22 insurance companies in the state with had no litigation in 2019
- Less than a third of insurers had more than 30% of claims becoming lawsuits
If litigation was such a systemic problem in the state of Florida, one would expect to see ALL insurance carriers reporting such issues. They are not, and Almaier’s original data set reflects that.
Altmaier’s report also used “confidential data” cited from the National Association of Insurance Commissioners, an organization of which he is also president. The public is not able to access or verify the accuracy of this data – most of which insurance companies are not even required to report on.
Florida Policyholders Need To Act Now
HB 305 and other related bills could go into effect this year. Lawmakers need to hear from policyholders NOW on the negative impacts of this legislation. Click here to connect with Florida lawmakers and make sure your rights are protected. You’ll be able to send a tailored message in less than 60 seconds to your elected officials.
