Florida's Hurricane Insurance Situation Looks Dismal
In the midst of an era of high hurricane activity, large insurance companies have pulled out of Florida, leaving small and "last resort" companies to insure all of highly hurricane-susceptible Florida. Many of these entities are severely underfunded, putting Florida in a dreadful financial situation as hurricane season approaches.
Florida's state mandated "last resort insurer", Citizens Property Insurance Corp., and its catastrophe funds are starved, and any small insurance company may not have the funds to payout if even one hurricane hits the Florida coast.
The Florida Hurricane Catastrophe Fund (CAT) which reinsures insurers, is also desperately underfunded. According to a CAT official, "The state was potentially on the hook for $28 billion last hurricane season but had access to only about $13 billion to reimburse insurers...The shortfall could be even bigger this year, up to $18 billion."
How will the Florida insurance mess unfold?
Ultimately, there is a good chance that after this hurricane season there will be many home owners that do not get paid in a timely manner, if they get paid at all.
Situations like these are part of the reason insurance companies dodge paying claims. With the risk of going into billions of dollars of debt, it is easier for insurers to delay or deny claims than to follow protocol and simply pay out legitimate claims.
With hurricane season well on its way, be sure you have the coverage you need. In the case that you must file a claim, hope that your insurer has the ability and is willing to get you the help you are entitled to. If that is not the case and your claim is denied or unreasonably delayed, be prepared to contact an insurance attorney who can assist you in obtaining your claims.
