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 home-owner harm claims with out making any cost in 2024. For these of us who intently observe Florida’s insurance coverage market, this headline is alarming however, sadly, not shocking. Householders who’ve dutifully paid their premiums anticipate 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 recommend a system the place policyholders are pressured to navigate the tough aftermath of a loss solely to have their claims denied or closed with out compensation. In lots of instances, these householders face important out-of-pocket bills or are left with out the means to restore or rebuild. The emotional and monetary toll is substantial, notably in a state the place pure disasters are a truth of life.
Nonetheless, to have a frank and balanced dialogue about this subject, 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 harm is just not coated below commonplace property insurance coverage insurance policies. Householders who expertise flooding however file claims below their property insurance coverage may understandably be denied as a result of that kind of loss falls exterior the coverage’s protection. In such instances, the insurer’s fingers are tied, although the denial feels deeply unfair to the home-owner.
Nonetheless, the flood exclusion alone doesn’t clarify why so many claims throughout so many firms are closed with out cost. It could 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 targeted on managing their threat than fulfilling their guarantees. Whereas combating fraud and sustaining monetary stability are respectable objectives, the pendulum appears to have swung too far towards 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 clients are routinely denied assist in their instances of want. We can not afford to normalize this development or excuse it away with statistics. Actual individuals are being harm.
Florida’s insurance coverage disaster is complicated, and there are not any simple fixes. Insurers are working in a difficult setting, however policyholders shouldn’t be made to bear the brunt of that actuality alone. As we proceed to debate options, we should be certain that the voices of householders — the very folks insurance coverage is supposed to guard — should not misplaced within the dialog. Zero-payment claims should not 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 should 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.
