Updated: 1:01 PM EDT Jul 8, 2022
ORLANDO, Fla. —
Like many Central Floridians, Kevin Quinn was shocked to learn his home insurance company was canceling his policy. The company’s reason: the approximate 16-year age of his roof.
“It’s just ridiculous. That was a sucker punch,” Quinn said.
He had a roof inspector check it out and determined the roof still has about seven useful years on it.
Starting July 1, insurance companies can’t cancel coverage in similar situations because of the laws Gov. Ron DeSantis signed after the May special session, but Quinn’s policy cancellation was dated June 24.
“It doesn’t make any sense to throw something away that’s perfectly good,” he said.
Quinn eventually found coverage with another carrier, but he’s paying more money for it, and he’s not alone.
The Insurance Information Institute (III) reports the average Florida homeowner will spend $4,231 to insure their home this year, which is nearly three times more than the national average of $1,544.
“If they want to chase people out of the state except for the really filthy rich, they’re doing a good job,” Quinn said.
“Because of this endless flow of roof replacement fraud schemes and runaway litigation. This has been happening for years,” said III spokesperson Mark Friedlander.
WESH 2 Investigates filed a public records request to get a better understanding of Florida’s home insurance fraud cases.
Here’s a look at the number of open cases over the past five years:
2017 – 234 cases
2018 – 294 cases
2019 – 123 cases
2020 – 121 cases
2021 – 244 cases
The number of open fraud cases went down in 2019, but by the end of 2021, they increased about 98%.
Who’s responsible? Policyholders? Attorneys? Contractors? The insurance companies? Florida’s Chief Financial Officer Jimmy Patronis said it’s mostly contractors.
But Patronis also said unethical contractors, public adjusters and attorneys are gaming the insurance claims process.
Under Florida law, policyholders can have a third-party file and settle their insurance claims. It’s called an Assignment of Benefits (AOB), which is the loophole many analysts say people are abusing.
But you can help stop it.
“If someone approaches you and says ‘hey, I think you’ve got a potential insurance claim’ and they’re pointing it out to you, my first call would either be to my office at 877-MY FL CFO, your insurance agent or your carrier to start the dialogue,” Patronis said.
Friedlander also highlighted the importance of cracking down on AOB abuse.
“If we stop the flow of these unscrupulous contractors and these third-party cases that will begin to help stabilize the Florida insurance market,” Friedlander said.
WESH 2 News is committed to helping you navigate Florida’s complicated home insurance market.
If you have an issue with your insurance coverage or settling a claim, contact our investigative team at wesh2newsinvestigates@hearst.com.