Insurance complaints rise in Irma’s wake
Many homeowners protest increase in hurricane deductibles.
A month after Hurricane Irma, consumers are starting to let state agencies know of more than 150 complaints ranging from long waits for adjusters to denial of claims, officials told a Florida Senate committee Tuesday.
One issue: A rise in high hurricane deductibles, often 2 percent to 5 percent of a home’s worth, means many consumers are paying thousands of dollars out of their own pocket before insurance kicks in. Nearly half the roughly 8,000 claims resolved so far in Palm Beach County have been closed without any payment from the insurer, The Palm Beach Post reported.
“A lot of people have deductibles way more than what their damage is, and a lot of people can’t afford it,” said Chip Merlin, founder of The Merlin Group law firm, which represents policyholders with offices in cities including Tampa and West Palm Beach.
Consumers generally have choices with hurricane deductibles and benefit from lower premiums in quiet years, industry officials say.
Florida Insurance Commissioner David Altmaier told the Senate banking and insurance committee no company appears to be at risk of losing financial solvency after Hurricane Irma.
Still, a ratings firm has downgraded the outlook to negative for one of the state’s top dozen insurers.
Tower Hill Prime Insurance Co. of Gainesville, which recently had about 145,000 customers according to a state database, retains a financial strength rating of A- (Excellent), but A.M. Best revised its outlook from stable to negative.
“Operating performance is not expected to improve in 2017 as the impact of Hurricane Irma is projected to drive an underwriting loss for the year,” a statement from A.M. Best said Sept. 29.
“A.M. Best recognized Tower Hill Prime’s appropriate capitalization and the company remains financially secure,” Tower Hill Prime said in a statement.
The company said storms in 2016 and 2017 have eroded profits on top of efforts to address non-storm claims such as plumbing leaks, which a number of state insurers maintain are frequently abused by attorneys and contractors who get consumers to sign over insurance benefits.
Representatives of companies, contractors, consumers and attorneys began speaking to the insurance committee about the “assignment of benefits” issue Tuesday, and are expected to resume testimony about possible legislative solutions in two weeks.
Statewide, about 703,000 Irma claims have been filed for an estimated $4.6 billion in potential payments from insurers.
State-run Citizens Property Insurance Corp., the state’s second-largest home insurer, said it has received about 54,000 claims and expects about 70,000 from Irma for about $1.2 billion in losses. Company officials have been using drones to help survey damage, said President Barry Gilway.
“Drones will give you a better view of the roof than any adjuster,” he said.
For a question or complaint about an insurance claim, call the state’s insurance consumer help line at 1-877-693-5236.
For federal aid with damage not covered by insurance, apply at www.DisasterAssistance.gov or call the FEMA Helpline at 800-621-3362. Or get help in person at a recovery center, such as the Carolyn Sims Center, 225 NW 12th Ave., Boynton Beach.