Lawsuit abuse is a significant cost driver in Florida’s property insurance market. Bad actors and third-party contractors are turning consumers’ insurance policies into a cash cow for themselves.
We are now seeing higher insurance costs and fewer companies that are willing to write new policies or renewing existing ones, leading to less choice in the marketplace and driving homeowners to the insurance of last resort known as Citizens Insurance.
According to the Florida Office of Insurance Regulation (OIR), between 2013 and 2020, Florida’s property insurers paid out $15 billion in claims costs. Only eight percent of that was paid to consumers while 71 percent was paid to attorneys. They also reported that while Florida accounts for only eight percent of all homeowner’s insurance claims in the U.S., it has 76 percent of homeowners insurance lawsuits.
During the special session that just ended, the Florida legislature passed some legislation that potentially will move the needle in the right direction as it addresses, among other things, abusive marketing tactics used by contractors.
However, Florida’s property insurance market will continue to struggle until the legislature fully addresses the rampant lawsuit abuse taking place and enact real reforms that will restore a healthy and sustainable insurance marketplace and lower costs for Florida consumers.
Katie Morris, Chairwoman
Citizens for Florida Prosperity
2883 Cooks Landing Road
Quincy, FL 32351