Florida Insurance Reforms: Two Years Later, the Stats

Florida’s property insurance landscape continues to evolve. Governor Ron DeSantis recently told insurers that the state’s legal reforms are beginning to yield results, citing declining lawsuits, moderating rate requests, and renewed market competition. With 17 new insurers entering the state and rate reductions outpacing increases, the changes could mark a pivotal moment for both the industry and policyholders. While the reforms have reduced litigation volume and encouraged more private carriers to re-enter the market, challenges remain including inflation, reinsurance costs, and catastrophic storm risks. For Florida homeowners, understanding how these developments affect coverage and claims will be critical moving forward. 👉 Read more about the state’s insurance market changes: https://lnkd.in/evxxTsDw #FloridaInsurance #InsuranceMarket #InsuranceReform #BoggsLawGroup #HomeownersCoverage

Florida homeowners are experiencing property insurance rate reductions: in fact, Panhandle-based insurance agent Trey Hutt notes an average decrease of 10.3% over the past year in his area. These lower rates come directly on the heels of the 2022 and 2023 reforms that addressed lawsuit abuse and curbed incentives for inflated claims. The result is a market that has been stabilizing for the past 12 months by every key measure, after multiple years of steep premium hikes. Consumers are benefitting from more carriers competing for their business, and the proof is in the rate filings: declines instead of double-digit increases. Florida is showing that litigation reform works. By curbing abusive practices and creating room for healthy competition, lawmakers have set the stage for a stronger, more resilient insurance market that puts homeowners first. https://lnkd.in/exrbuW9s

🔥 ₹15.71 LAKHS to ₹1.66 LAKHS: When a Landmark Ruling Changed Everything 🔥 A storm-damaged rice mill. A massive claim. A dramatic reversal by India's National Consumer Commission. This isn't just another insurance case—it's a masterclass in why CONTRACT CLARITY is the backbone of our industry. 📊 THE NUMBERS THAT SHOCKED EVERYONE: Stock Insured: ₹20 lakhs Actual Stock Value: ₹5.35 CRORES Claim Demanded: ₹38+ lakhs State Commission Award: ₹15.71 lakhs FINAL VERDICT: ₹1.66 lakhs ✓ Under-Insurance Ratio: 1:26 😱 ⚖️ WHAT THE COMMISSION SAID (And Why It Matters): 💡 "The insured cannot claim anything more than what is covered by the insurance policy" — Supreme Court precedent upheld 🎯 4 GAME-CHANGING PRINCIPLES: ✅ Contracts mean what they say — No adding, no subtracting, no creative interpretation ✅ Professional surveyors aren't optional — Their assessments carry legal weight when done right ✅ Under-insurance has consequences — Insure for ₹20L but hold ₹5.35Cr? Pay the price. ✅ The Average Clause is real — Partial losses get proportionate payouts 🎯 WHY THIS IS A WATERSHED MOMENT: FOR POLICYHOLDERS: 🚨 That "small premium savings" from under-declaring? It could cost you MILLIONS in a crisis. 💰 Want full protection? Declare full value. Simple. FOR INSURERS: ✨ Professional integrity WINS in court 📋 Document everything. Survey professionally. Follow the contract. ⚖️ Fair ≠ Unlimited. Fair = As Per Agreement. FOR THE INDUSTRY: 🛡️ This ruling strengthens the entire insurance ecosystem 🤝 When contracts are honored, trust grows 📈 Sustainable insurance needs clarity, not chaos 💥 THE REAL STORY HERE? This wasn't about denying a claim. The insurer PAID exactly what the policy covered. The surveyor did their job. The system worked. The rice mill owner wanted ₹38 lakhs on a ₹20 lakh policy covering ₹5.35 crores worth of stock. That's not insurance fraud. That's insurance mathematics. 📐 🔮 WHAT THIS MEANS FOR YOU: 📍 Business Owners: Review your coverage TODAY. Are you actually protected? 📍 Insurance Pros: Use this case in your client conversations. Real numbers. Real consequences. 📍 Risk Managers: Under-insurance is the silent killer of protection strategies. 💬 THE QUESTION EVERYONE'S ASKING: Should insurers be more flexible with policy terms, or is strict adherence the only way to maintain industry integrity? Drop your thoughts below. Let's have this conversation. 👇 Reference: FA No. 1103/2016, National Consumer Disputes Redressal Commission Date: May 16, 2025 #InsuranceClaims #RiskManagement #LegalVictory #InsuranceIndustry #BusinessProtection #ClaimsSettlement #InsuranceLaw #IndianInsurance #NCDRC #ConsumerLaw #RiskMitigation #InsuranceFacts #BusinessLaw #FinancialProtection #InsuranceTips

The California insurance market has been one for the ages. We are starting to see the rate application approvals from almost 2 years ago. That means that carriers are actually getting their rates to where they should have been in late 2023 early 2024. If you look at national averages we are still well below almost every state in average premium. That being said, the E&S market is still going to be a robust option while the larger carriers reposition themselves and navigate a difficult reinsurance market. What does that all mean? The big carriers are not coming back like they were before. All risk is being evaluated more thoroughly. If you are in the real estate market. Take some time to speak with your preferred agents on what they need to find you the best rates. Realize that a 48-hour window is a thing of the past. Start talking to clients early when they are viewing homes. Set them up to succeed by introducing them to the right people. Make sure disclosures include roof age, plumbing updates, electrical updates, claims history, etc. These issues will make or break deals. Be the changemaker that has trusted allies in this space.

In this story from Reuters' The Insurer, PIFF's Michael Carlson shares insight on the Florida insurance market moving from deeply unbalanced to cautiously stable. More in "Reforms fuel Florida insurance revival:" https://lnkd.in/exvVFh4T

🛑 “But my house is insured…” Yes, but did you disclose all the material facts? When it comes to insurance, it’s not just about having a policy — it’s about what you told your insurer when you got it. ✅ A material fact is any information that could affect an insurer’s decision to accept your application, calculate your premium, or process a future claim. 🏠 In domestic insurance, examples include: ✅Previous claims made on the property ✅Whether the house is vacant for long periods ✅Use of the property for business ✅Type of roofing or building materials ✅Any renovations or structural changes ✅Lack of proper security systems 👌Why Material Facts Matter in a Claim When a claim is filed, the insurer will investigate whether all relevant facts were disclosed when the policy was taken out. If it’s discovered that a material fact was concealed or misrepresented — whether intentionally or accidentally — the insurer may: 🚫Reject the claim entirely, 🚫Reduce the payout, or 🚫Cancel the policy from inception (as if it never existed). Example: A homeowner insures their property but fails to disclose that the house is under renovation and unoccupied. If a fire occurs, the insurer might argue that this material fact increases the risk of damage and would not have issued the policy under the same terms — leading to a denied claim. “But My House is Insured” — The Common Misconception Many policyholders mistakenly believe that once a policy is issued, all is secure. However, an insurance contract is only valid if full disclosure was made. Simply having an active policy doesn't guarantee a claim will be honored if material facts were not properly disclosed. This is where people often feel let down, not realizing that non-disclosure voids the integrity of the policy. 📌 The Importance of Disclosing Material Facts 1. Avoiding Claim Rejection Disclosing all relevant information ensures that there are no surprises at the time of a claim. Insurers can only make fair decisions when they have complete and accurate information. 2. Maintaining Trust and Legal Standing Insurance contracts are legal agreements. Failing to disclose material facts can be considered fraud or misrepresentation, potentially leading to legal consequences and loss of coverage 3. Better Tailored Coverage Honest disclosure enables insurers to offer products that better match the actual risk, ensuring you get the right protection for your needs. 4. Peace of Mind Knowing you’ve disclosed everything important removes any doubt or stress during the claims process. It builds trust and long-term value between you and your insurer. 🔐 Insurance is built on trust (utmost good faith) . Disclosure is not optional — it’s essential. Let’s educate, inform, and protect ourselves from unnecessary risks. # Materialfacts # Disclosure # TheShieldInvestment

Insurance and Legal Reforms Work! A new report from reinsurance giant Gallagher Re confirms that recent legislative and legal reforms are successfully reversing Florida’s insurance crisis, bringing much-needed market stability. Check out the facts: • Litigation Drops: The number of property claims lawsuits against carriers has dropped significantly (to 2018 levels). • More Capacity: 14 new insurance companies have entered the Florida market since the reforms. • Costs Down: Reinsurance prices have fallen, including a risk-adjusted reduction in the latest renewals. • Market Health: Policies with the state insurer, Citizens Property Insurance Corp., have dropped sharply as business moves back to the private sector. The results are clear: reforms work to attract capital and stabilize the market. Go deeper:

Many third-party insurance coverage cases are considered “mixed actions” in that they seek both declaratory relief (e.g., a holding that the insurer should have defended the underlying action) and damages (e.g., the insurer must reimburse all reasonable attorneys’ fees incurred by the insured). In the federal court system, this issue can become important. Federal courts have very little authority to abstain from passing judgment on claims seeking damages, but the Declaratory Judgment Act, 28. U.S.C. § 2201(a), gives federal courts discretion in determining whether to exercise jurisdiction over claims seeking declaratory relief. In Fire-Dex, LLC v. Admiral Ins. Co., 139 F.4th 519 (6th Cir. (Ohio) 2025), the Sixth Circuit concluded that the district court had abused its discretion by remanding the declaratory judgment claims to state court and staying the claims for damages pending resolution of the state court action. Under the test formulated by the panel, a district court “must exercise jurisdiction [if the damages claim] raises the same legal issue as the accompanying declaratory relief claim.” Id. at 534. In the vast majority of third-party insurance coverage cases, that test will be satisfied as both the declaratory relief and damages claims are centered on the same question: are the underlying claims covered (for the duty to indemnify) or potentially covered (for the duty to defend) by the applicable policy? The bottom line is that this ruling removes one method by which policyholders can attempt to effectively win their cases in state courts as opposed to federal courts. Despite both state and federal courts purportedly applying the same legal standards for insurance coverage analysis, this can be a critical distinction. As previously discussed in my earlier blogs, a pattern has recently emerged in which federal courts misconstrue or simply ignore policyholder-friendly coverage principles developed in state courts. See, e.g., David A. Gauntlett, Worrying Trend: Ninth Circuit Expansively Interpreting Exclusions, https://lnkd.in/e2uEgfqU (Mar. 27, 2025).

Florida insurers escalate the battle over public adjusters! At least six property insurers in Florida — including Velocity Risk, American Integrity, Orange Insurance Exchange, Safe Harbor, and US Coastal — are testing a new tactic: policy endorsements that discourage or even disincentivize policyholders from hiring public adjusters. The National and Florida Associations of Public Insurance Adjusters have now filed suit, arguing that these endorsements violate Florida law and amount to unfair trade practices. While surplus lines carriers like Lloyd’s syndicates can move more freely, several admitted carriers are seeking state approval for similar forms — offering premium discounts if homeowners agree not to engage public adjusters. The move highlights a growing rift between carriers seeking tighter control over claims handling and adjusters defending policyholder advocacy. Expect this battle to shape Florida’s property insurance landscape well into 2026. #Homeownersinsurance #Floridainsurance #publicadjuster #insurancenews #citizens Risk Advisors LTD https://lnkd.in/giX_cg6d