Property Insurers Running Away from Floridians

United Property & Casualty Insurance will be leaving the Florida homeowners insurance market. They join an ever-growing list of homeowners insurance companies leaving Florida over what the insurers claim are mounting litigation claims.

However, Florida is not the only state United plans on withdrawing from. It also plans to leave the homeowners insurance markets of Texas and Louisiana. It is no coincidence that all three states share the unfortunate distinction of being in what meteorologists term “hurricane alley,” the geographical locations most likely to be effected by devastating hurricanes.

So, while mounting litigation in Florida over denied and underpaid claims is certainly a factor in the withdrawal, the facts that Texas and Louisiana, which do not have as high a rate of litigation, shows that geography is just, if not more important a factor. Politicians in Tallahassee have targeted litigation, but have yet to hold insurers feet to the fire for the business decisions that have nothing to do with legalities.

Without any repercussions from governments in either Florida or the Federal government, such actions as United will leave many homeowners out in the dark, through no fault of their own. In addition, such actions will continue to dissuade property owners from fighting insurers bad, error filled decisions to underpay or flat out deny good insurance claims. In addition, such decisions will leave Florida tax-payers on the hook for payments in the event of a devastating hurricane, as Citizens, the government-funded and supported insurer of last resort, will continue to cover those who cannot obtain homeowners insurance. For more on this issue, read and watch this piece from the Miami Herald and WPTV Palm Beach.

At DLB Law, we refuse to allow insurance companies to shirk their legal responsibilities. Call or write us today to discuss whether your denial or underpaid claim can be fought.