The departing Florida insurance commissioner has warned that South Florida will see further increases in property insurance rates if something isn’t done about water claims abuses.
The state-run Citizens Property Insurance Corp. has notified South Florida customers that they could see indefinite 10% rate hikes if water loss claims unrelated to storms and costs from related lawsuits aren’t controlled, according to the Sun Sentinel. Several other insurers are also seeking rate increases.
Insurance companies are blaming unethical contractors and attorneys for the rate hikes. But Kevin McCarty, who will leave state government in July after 28 years of government service and 13 years as insurance commissioner, said insurers need to be quicker to respond to customers with legitimate water loss claims so they don’t end up seeking out fraudsters, the Sun Sentinel reported.
Explore the causes why Florida insurance rates going up by reading this article.
“They coull all do a better job of communicating the importance of contacting your insurance company in the event of a loss,” McCarty said. “Let’s be candid: (contacting insurers) is not always easy to do. And that may be the beginning of the problem.”
McCarty said he’s hopeful that new language approved for most insurance companies – which spells out policyholders’ claims reporting responsibilities – will help control costs.
McCarty joined the state’s insurance office just before South Florida was walloped by Hurricane Andrew in 1992, the Sun Sentinel reported. He was responsible for the creation of the first state-run agency to make insurance available to Floridians after national insurers began pulling out. That company became Citizens in 2002.
William Stander, executive director of the Florida Property & Casualty Association, told the Sun Sentinel that McCarty “built the template for future Florida insurance commissioners.
“He ably navigated a regulatory path through difficult waters, crisis after crisis,” Stander said.
