>>JENNIFER WAUGH: STARTING TODAY, THE STATE LEGISLATURE BEGINS ANOTHER SESSION, A
SPECIAL SESSION IN TALLAHASSEE
DESIGNED TO ADDRESS THE
PROPERTY INSURANCE CRISIS.
FLORIDA HOMEOWNERS PAY THE
HIGHEST PREMIUMS IN THE
COUNTRY IN THE COUNTRY. ALMOST
3 TIMES. THE NATIONAL AVERAGE,
ACCORDING TO THE INSURANCE
INFORMATION INSTITUTE. THESE
PREMIUMS ALSO ARE CLIMBING AT
A RATE OF ABOUT 33% A YEAR
COMPARED TO 9% BOOST ACROSS
THE REST OF THE COUNTRY. MORE
THAN A DOZEN INSURANCE
COMPANIES HAVE STOPPED WRITING
HOMEOWNERS POLICIES HERE IN
FLORIDA THIS YEAR, INCLUDING A
HALF DOZEN THAT ACTUALLY GONE
OUT OF BUSINESS ALTOGETHER. A
7TH INSURANCE COMPANY, UNITED
PROPERTY AND CASUALTY
ANNOUNCED JUST FRIDAY IT PLANS
TO CANCEL POLICIES AT THE END
OF MAY, WHICH IMPACTS 140,000
CUSTOMERS. AND A LITTLE MORE
THAN AN HOUR AGO, ANOTHER FED
NET FILED FOR CHAPTER 11
BANKRUPTCY PROTECTION. MARK
FREELANDER IS WITH THE
INSURANCE INSTITUTE.
INFORMATION INSTITUTE IS
JOINING US VIA ZOOM THIS
MORNING. GOOD MORNING. THANKS
FOR BEING WITH US. SO AS WE
KNOW, THERE IS A PAIR OF BILLS
BEING PROPOSED, WHICH WERE
REALLY THANKS SO MUCH FOR
HAVING ME. SHARE THAT DID
THAT. LET’S DIG INTO WHAT
THESE PROPOSALS MEAN. I KNOW
THAT THERE’S A LITTLE BIT OF A
DELAY. SO JUST BEAR WITH US
FOR OUR HOME, FOR OUR VIEWERS
AT HOME. SO THE FIRST IT WITH
WHICH IS EXPECTED TO BE
DEBATED IS LITIGATION COSTS
WHICH CALL FOR ELIMINATING
REQUIREMENTS THAT PROPERTY
INSURERS ACTUALLY PAY THE
ATTORNEY FEES OF POLICYHOLDERS
WHO SUCCESSFULLY FILE LAWSUIT.
WOULD YOU EXPLAIN WHY THIS IS
SUCH A HUGE DEBATE?
>> FIRST, I WANT TO SAY THIS
LEGISLATION THAT’S BEEN FILED
IS THE MOST GROUNDBREAKING
LEGISLATION WE HAVE EVER SEEN
FOR PROPERTY INSURANCE FARM IN
FLORIDA. IT CLEARLY SHOWS THE
NEW LEADERSHIP OF THE FLORIDA
HOUSE OF FLORIDA SENATE
UNDERSTAND THE ENORMITY OF THE
SITUATION AND ARE TAKING
STRONG ACTIONS TO HELP
STABILIZE OUR PROPERTY
INSURANCE MARKET. THE KEY
DRIVER OF THE CRISIS HAS BEEN
ONE WAY ATTORNEY FEES. THIS IS
WHY 6 COMPANIES HAVE FAILED
THIS YEAR. AND AS YOU MENTION,
A 7TH COMPANY IS GOING TO
CEASE OPERATIONS NEXT SPRING.
BECAUSE OF THESE MASS VOLUME
OF ATTORNEY FEES, COMPANIES
CAN’T AFFORD IT. THEY CAN’T
AFFORD TO PAY THE EXPENSES AND
THAT’S WHY THE SMALLER
REGIONAL INSURERS ARE GOING
OUT OF BUSINESS. SO IT’S
ESSENTIAL TO STOP THE FLOW OF
THESE FEES IN ORDER TO HAVE
THE FLORIDA MARKET STABILIZE
AND HAVE THE REGIONAL
COMPANIES THAT OPERATE IN OUR
STATE SURVIVES.
>>JENNIFER WAUGH: SO IS
INTERESTING THAT YOU BRING
THAT UP BECAUSE THAT’S
CERTAINLY THE ONE SIDE OF
THIS. THE OTHER FROM FROM THE
INSURANCE COMPANIES, THE OTHER
SIDE, AS YOU HAVE ATTORNEYS
WHO REPRESENT HOMEOWNERS WHO
ARE REPRESENTING THEM BECAUSE
HOME OWNERS SAY THAT THEIR
CLAIMS HAVE BEEN DENIED AND
SHOULDN’T HAVE BEEN. AND AS A
RESULT THERE, YOU KNOW, LEFT
PAYING FOR, YOU KNOW, THE
COSTS. NOW, THE SENATE
PRESIDENT HAS SAID THAT THAT
WE WANT TO MAKE SURE THAT WHEN
DAMAGE OCCURS, CLAIMS ARE
PLAYED, PAID PROMPTLY AND
FAIRLY SO HOMEOWNERS DO NOT
HAVE TO CONTEND. SO BE
INTERESTING TO SEE THIS WEEK
HAVE A MITIGATE THOSE CONCERNS
ABOUT UNPAID CLAIMS. LET ME
MOVE TO THE NEXT ISSUE. AND
THAT IS SOMETHING CALLED BE
ASSIGNMENT OF BENEFITS. MARK,
WOULD YOU EXPLAIN THIS?
BECAUSE THIS IS ACTUALLY
SOMETHING THAT OUR I TEAM
REPORTS ON ALL OF THE TIME.
AND THAT’S WHEN HOMEOWNERS HAS
ESSENTIALLY BEEN RIPPED OFF BY
A ROOFER.
>> ASSIGNMENT OF BENEFITS
MEANS YOU AS A HOMEOWNER, HALF
ASSIGNED YOUR CLAIM TO A 3RD
PARTY. YOU SIGNED OVER YOUR
CLAIM. ALL RIGHT TO THE CLAIM
MEETING NOW THE 3RD PARTY
COULD NUMBER ONE COLLECT ON
THAT CLAIM DIRECTLY FROM THE
INSURANCE COMPANY. AND NUMBER
2, THEY COULD SUE THE
INSURANCE COMPANY ON YOUR
BEHALF WITHOUT YOUR CONSENT.
YOU’VE GIVEN HIM CONSENT SOLE
RIGHTS TO THAT CLAIM. AND BE
HAS BEEN SEVERELY ABUSED IN
FLORIDA WITH ROUGH SCAM ACROSS
THE STATE WHERE HOMEOWNERS ARE
BEING SCAMMED INTO THINKING
THEY REALLY NEED TO REFER
PLACE. BUT WHEN THEY DON’T,
IT’S NOT A LEGITIMATE LOST.
IT’S MOST LIKELY WEAR AND TEAR
IT THE MOST. IT’S NOT JUST OUR
RECLAIM AND UNSCRUPULOUS
CONTRACTORS ARE TAKEN
ADVANTAGE OF BE STATUTE TO
SCAM HOMEOWNERS AND SCAM THE
INSURANCE INDUSTRY. AND THIS
IS REALLY A KEY DRIVER OF
FRAUD OUR STATE.
>>JENNIFER WAUGH: AND THESE
BILLS ESSENTIALLY ELIMINATE
ASSIGNMENT OF SOMETHING
HOMEOWNERS MAY NOT UNDERSTAND
MARK ABOUT THEIR POLICY. IT
UNTIL QUITE FRANKLY, IT’S TOO
LATE. IS REPLACEMENT COST AND
ALSO THE NEED FOR FLOOD
INSURANCE.WOULD YOU EXPLAIN
BASED ON WHAT WE KNOW FROM
FRIDAY, HOW THESE BILLS ARE
GOING TO CORRECT THIS BY
ESSENTIALLY ESTABLISHING A NEW
ASSISTANCE PROGRAM. RIGHT?
WELL.
>> LET’S TALK ABOUT
REPLACEMENT COSTS. FIRST
NATIONALLY. WE’RE SEEING A
TREND WHERE REPLACEMENT VALUES
FOR HOMER RUNNING NEARLY
DOUBLE THE U.S. CONSUMER PRICE
INDEX. SO TO REPLACE YOUR HOME
TODAY WILL COST APPROXIMATELY
16% MORE THAN IT COST A YEAR
AGO. SO IT’S REALLY IMPORTANT
FOR ALL HOMEOWNERS TO DO A
QUICK REVIEW WITH INSURANCE
AGENT TO MAKE SURE THEY HAVE
THE RIGHT VALUE OF COVERAGE.
IT’S CALLED DWELLING COVERAGE
IN YOUR POLICY TO MAKE SURE IF
THEY SUFFER A CATASTROPHIC
LAST DAYBELL HAVE ENOUGH FUNDS
TO REPLACE THAT HOME. THE
OTHER BIG ISSUE IS FLOODING
CHURCH. MANY HOMEOWNERS ASSUME
TO HAVE FLOOD INSURANCE
BECAUSE THEY HAVE HURRICANE
WINDSTORM COVERAGE. BUT FLOOD
INSURANCE IS TYPICALLY A
SEPARATE POLICY. THAT EITHER
IS AN ADD-ON TO YOUR EXISTING
HOME POLICY OR A COMPLETELY
SEPARATE POLICY YOU BUY, WHICH
IS UNDERWRITTEN. 2 EYES IS THE
NATIONAL FLOOD INSURANCE
PROGRAM OR A PRIVATE INSURER
IN THE BILLS THAT WERE FILED
LAST FRIDAY CITIZENS. THE
STATE RUN INSURER OF LAST
RESORT IS NOW GOING TO REQUIRE
THEIR POLICYHOLDERS TO HAVE
FLOOD COVERAGE. IT’S A SCALE.
SO IT’S BASED ON THE LEVEL OF
THE HOME, THE VALUE OF THE
HOME IN TERMS OF THE DATE WHEN
THE REQUIREMENT TAKES PLACE.
IT’S OVER THE NEXT SEVERAL
YEARS. BUT IN THE LONG RUN,
EVERY SEEING A POLICYHOLDER
CITIZENS WILL BE REQUIRED TO
HAVE FLOOD INSURANCE. AND WE
THINK THAT’S A GREAT THING
BECAUSE WE SAW THE DEVASTATION
FROM HURRICANES IN AND THE
CALL AND HOW MANY FLORIDA
HOMEOWNERS ARE NOT FINANCIALLY
PROTECTED BECAUSE THEY DIDN’T
HAVE FLOOD INSURANCE. IT’S SO
IMPORTANT TO READ THE POLICY
AND UNDERSTAND WHAT IT MEANS.
WORST-CASE SCENARIO, MARK