The Florida Office of Insurance Regulation fined insurance companies over $2 million for mishandling of policyholders' claims after Hurricanes Ian and Idalia.
What's happening?
Eight insurance companies were fined for their responses to 2022's Hurricane Ian and 2023's Hurricane Idalia.
According to Newsweek, the wrongs committed include "using adjusters who were improperly appointed; not acknowledging receipt of claims communications in a timely manner; not including certain disclosure statements when providing estimates on damage claims; failing to provide Homeowners Claims Bill of Rights; and failing to pay interest when owed."
Thousands of homeowners' claims were closed without any payment, leaving people scrambling to repair their homes and livelihoods.
Why is it important to understand "hurricane insurance"?
As global temperatures rise, catastrophic weather incidents are becoming more commonplace, which threaten our shelter and safety. Concurrently, insurance companies are increasing their costs to mitigate the risks of increased destruction.
People may want to consider a variety of coverages to fully protect their homes from the damage weather can inflict. Some might not be cognizant of what their insurance covers or doesn't.
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"Hurricane insurance doesn't exist as a separate type of policy. The term usually means a hurricane deductible on a homeowners insurance policy," Investopedia explained on its website, adding that flood insurance and windstorm policies can help protect people from this devastation.
If you live in a state like Florida where hurricane deductibles exist, it's important to make sure your insurance policy covers all possible damage.
What's being done about insurance companies that fall short of their promises?
These fines are a start in a state repeatedly walloped by hurricanes.
"The reality is that Florida policyholders are getting some of the worst treatment in the country," said Doug Quinn, of the American Policyholders Association, per WPTV.
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Definitely 🥰 Some good news is that these fines won't be recouped by increasing policy costs.
Newsweek reported that Florida authorities were actually pretty happy with the fines existing. After the insurance market spent years declining because of litigation, fraud, and increased natural disasters, officials were sure that fines would control the market.
As hurricanes and other weather emergencies are more frequent and intense, it's important to hold insurance companies accountable for their policies. People rely on insurance for basic survival in cases like this. It's important to be informed about policies and for insurance companies to stay true to their commitments.
"These fines are proof positive that we are committed to holding them accountable," said Florida Chief Financial Officer Blaise Ingoglia, as quoted in WPTV.
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