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Proposed law will protect Floridians from insurance companies

On Behalf of | May 24, 2023 | Insurance Law and Litigation

The number of disasters that have impacted Floridians has made it increasingly difficult to get sufficient insurance. This is weather-related and is connected to property damage from unexpected incidents with injuries and fatalities. In addition, many insurers are trying to find ways to resist paying out what the owner and even adjusters believe is fair to repair and replace that which was damaged or lost.

This is an ongoing problem that has led to many insurers leaving the state or making premiums so high that few people are able and willing to pay. The state government has been actively seeking solutions that will benefit both sides. As this process moves forward, people who believe they have been wronged by an insurer should have advice with holding them accountable.

“Insurer Accountability Bill” proceeds to governor’s desk

State lawmakers have been concerned about this problem from the perspective of insurers and policy holders. That included passing a bill for the benefit of insurance companies that would reduce the number of frivolous lawsuits they face. To benefit consumers, it recently passed the “Insurer Accountability” bill and sent it to Gov. Ron DeSantis for signature.

Insurers are frequently confronted by allegations of acting in bad faith. Acts include misrepresentation of the terms of the contract, not being upfront about provisions, failing to inform customers about exclusions and taking other steps to keep from paying. With the new law, once it is in effect, state regulators will have greater oversight.

Among the rules insurers must now follow include not canceling policies without sufficient justification. If insurers violate the rules, the Department of Financial Services will be granted the right to deny them licenses. The bill has bipartisan support. Despite this positive step, it does not immediately help Florida consumers who have been dealing with allegations of wrongdoing on the part of insurance companies.

Insurance litigation may be the only way to fight back against insurers

Although state lawmakers are trying to improve the landscape for Florida consumers, that does not mean the crisis is over. Insurance companies are trying to profit and part of that is questioning claims that are otherwise valid and seeking ways to deny or reduce them.

Given the number of weather-related events and other catastrophes that have impacted Floridians in recent years, insurance can be a lifeline. When it is not paid or there are disputes, it is vital to have professional help in considering the options for insurance litigation.