Storm Losses and Attorney and Public Adjuster Fees in Florida

“While hurricanes have become more frequent and severe in recent years, the threat of damage from catastrophic weather events is not the only factor driving a decrease in capacity and increased insurance costs in the state. Increased legislation has increased the cost of claims. The Florida Office of Insurance Regulation reports that Florida accounts for only 9% of the nation’s homeowners’ claims but 79% of homeowners insurance lawsuits. The Florida Office of Insurance Regulation states that over a 10-year period, 71% of the $51 billion paid by Florida insurers went to attorneys’ fees and public adjusters. In total, these parties have received more claims settlement money than policyholders. In 2023, the industry posted collective underwriting losses of $190.8 million, marking the eighth straight year of losses, according to S&P Global. As a result, insurance in Florida continues to be scarcer and more expensive. (more…)