GETTING RESULTS. >> IT’S TIME FOR THE WEEKLY WITH NEWS 6 MORNING ANCHOR
JUSTIN WARMOTH.
>> THIS IS THE WEEKLY ON
CLICK, ORLANDO DOT COM WITH
JUSTIN WARMOTH.
>> JONATHAN: GOOD MORNING. I’M
JUSTIN WARMOTH. LAST WEEK WE
TOLD YOU ABOUT FLORIDA’S
PROPERTY INSURANCE CRISIS IN
THE REASON BEHIND SOARING
PREMIUMS AND DROPPED POLICIES.
IT’S IMPACTING A LOT OF
FLORIDIANS AND MY EMAIL INBOX
CERTAINLY REFLECTS THAT
FOLLOWING LAST WEEK’S EPISODE
THAT FEATURE THE OWNER OF A
LOCAL INSURANCE COMPANY. HIS
REASONING BEHIND WHAT’S
PLAGUING THE MARKET AMONG
OTHERS AS MOUNTING LITIGATION
CARRIERS IN FLORIDA SHELLING
OUT MORE THAN A BILLION
DOLLARS LAST YEAR AND
UNDERWRITING LOSSES. THAT’S IN
ADDITION TO PAYING OUT CLAIMS
AND IT’S FORCING A NUMBER OF
AGENCIES TO GO UNDER. BUT OUR
GUEST THIS MORNING, PROPERTY
INSURANCE ATTORNEY JOHN
TOLLEY, SAYS THAT’S NOT THE
WHOLE STORY.
>> INSURANCE AGENCIES ARE ARE
BLAMING THESE HIGH PREMIUMS
AND DROPS POLICIES ON THE
MOUNTING LITIGATION IS THAT
HOW YOU SEE IT? IS THAT WHAT’S
HAPPENING HERE?
>> WELL, I THINK THERE
CERTAINLY RIGHT THAT IT’S
BASED ON LITIGATION. BUT I
THINK THAT THEIR BASES FOR
THAT IS IS NOT CORRECT.
>> WHAT I’M SEEING A LOT HERE
IS THAT THEY’RE DENYING MORE
CLAIMS THAN THEY EVER HAVE
SINCE HURRICANE IRMA THERE AND
ARE PAYING MORE CLAIMS THAN
THEY EVER HAD SINCE HURRICANE
IRMA. IT WAS KIND OF A GAME
CHANGER IN THE STATE OF
FLORIDA FOR THESE TYPES
CLAIMS. AND AS A RESULT OF
THAT, OBVIOUSLY LITIGATION HAS
TO BE DONE RIGHT TO ME. THIS
IS LIKE GOING AND BUYING A
CAR, PUTTING A DOWN PAYMENT ON
IN THE CAR COMPANY TELLING YOU
YOU DON’T GET THE CAR, RIGHT?
THAT’S WHAT WE’RE DOING IS AS
FOR HOMEOWNERS IN THE STATE OF
FLORIDA, PAYING THESE
INSURANCE COMPANIES TO PROTECT
ESSENTIALLY WHAT OUR BIGGEST
ASSET, RIGHT? I MEAN, WHAT’S
THE AMERICAN DREAM, RIGHT?
IT’S GET MARRIED, HAVE KIDS,
YOU KNOW, HOME. SO WE’RE
PAYING THEM TO PROTECT OUR
HOME. THEY’RE NOT PROTECTING
OUR HOME. THEY’RE TELLING YOU
KNOW, THE CASE IS DENIED TOO
BAD, TOO SAD. AND THEN THE
HOMEOWNER HAS NOTHING LEFT TO
DO. IF THEY DON’T HAVE PEOPLE
LIKE ME, RIGHT? THEY DON’T
HAVE A LAWYER WHO CAN THEN SAY
NO, YOU DID. INSURANCE COMPANY
BREACHED ITS CONTRACT. SO
THAT’S WHAT WE’RE SEEING OUR
LEVEL. AND THAT’S WHAT WE HAVE
TO DO FOR THE HOMEOWNERS. ONCE
THERE’S A COVERAGE DECISION
THAT’S MADE. NOT ACCUSING YOU
OF THIS AND OF COURSE, BUT DO
YOU SEE THAT? AND SOME AREAS,
SOME FACET, HEAR THAT.
HOWEVER, FLORIDA HANDLES ALL
THIS AND AND THE CLAIMS.
EVERYTHING LIKE THAT. THERE IS
SOME.
>> WHETHER IT’S WITH ROOFERS
OR SOMETHING LIKE THAT OR SOME
FRAUD GOING ON, THAT MIGHT BE
MAKING THE LITIGATION, THE
LEGIT LITIGATION SEEM LIKE.
THAT. THAT’S AN ISSUE, YOU
KNOW, TO ME LIKE BECAUSE THIS
BLANKET STATEMENT THAT
ANNOUNCING LITIGATION IS THE
PROBLEM. WELL, THERE ARE
LEGIT. CASES THAT NEED TO BE
ADDRESSED. BUT THERE ARE SOME
THAT ARE BEING EXPLOITED. DO
THINK THAT’S IT. THAT’S A
FACTOR IN THIS.
>> LOOK, AT THE END OF THE
DAY, NO MATTER WHAT INDUSTRY
WE’RE IN, THERE’S ALWAYS GOING
TO BE SOME BAD ACTORS, RIGHT?
THERE’S GOING TO BE BAD ACTORS
ON BOTH SIDES. AND I THINK MY
ISSUE WITH THIS INDUSTRY AND,
YOU KNOW, I’VE BEEN DOING
THIS. I USED TO WORK FOR THE
CARRIERS AND NOW I OBVIOUSLY
WORK AGAINST THE CARRIERS AND
IT’S KIND OF A ONE-SIDED
THERE. FRIDAYS INSURANCE
COMPANIES HAVE MILLIONS OF OUR
DOLLARS TO SPEND ON OUR
ARTICLES, YOU KNOW,
PUBLICATIONS, BLOGS,
ADVERTISING. AND SO WHAT WE
HEAR A LOT IN THE STATE OF
FLORIDA AND BEING A KID FROM
ORLANDO, YOU KNOW, GROWING UP,
I ALWAYS REMEMBER THAT IT WAS
ALWAYS THE PEOPLE ARE
COMMITTING FRAUD AGAINST THE
INSURANCE COMPANY. IT WAS
NEVER THE INSURANCE COMPANY
COMMITTING FRAUD AT ALL. IT’S
FUNNY NOW, BUT I DO THIS. I
MEAN, I RECENTLY JUST OPPOSED
ESSENTIALLY FOR WHISTLEBLOWERS
AGAINST A MAJOR INSURANCE
COMPANY HERE IN FLORIDA. AND
THEY ALL CAME OUT UNDER OATH
AND TESTIFY THAT THIS
INSURANCE COMPANY FORCED THEM
TO NOT PUT DAMAGES IN THE
REPORT. THEY FORCE THEM TO 0
OUT ESTIMATES BECAUSE WHEN
THEY GOT THERE, THEY DRAFT OF
THESE ESTIMATES. AND SO THESE
INSURANCE COMPANIES ARE
WRITING THEM SAYING, HEY, GET
RID OF THIS. THAT VOICE MAILS
AND TEXT MESSAGES FROM
MANAGERS TELLING THEM TO DO
THIS AND THEN ULTIMATELY TO
DENY ALL OF THESE CLAIMS THAT
ARE RELATED TO THESE EVENTS
BECAUSE THEY WEREN’T GOING TO,
YOU KNOW, THEY’RE WORKING TO
PROVIDE COVERAGE AND
INCENTIVIZE THESE ADJUSTERS BY
TELLING THEM THEY WERE GOING
TO PAY THEM WERE QUICKLY. SO I
MEAN, OF COURSE, THERE’S BAD
ACTORS ON BOTH SIDES. BUT I
THINK, UNFORTUNATELY, IN THE
STATE OF FLORIDA, WE HEAR A
LOT OF TIMES IT’S THE BAD
ACTOR ON THE PLAINTIFFS SIDE.
IT’S NEVER A BAD ACTOR WHEN IT
COMES INSURANCE CARRIER. I
MEAN, THOUGH, THOSE 4
STATEMENTS UNDER OATH AND THE
EVIDENCE OF MY OFFICE HAS AND
THOSE OBVIOUSLY SPEAKS
DIFFERENT, TOO. BUT THE
NARRATIVE IS RIGHT. YEAH, THAT
NARRATIVE SEEMS TO BE THAT.
>> LET’S JUST, FOR EXAMPLE, A
20 YEAR OLD RULES GETS DAMAGED
BY HAIL. YOU GET A BRAND NEW
ROOF. NOT BECAUSE YOU KNOW,
YOU JUST GET A BRAND NEW ROOF
ONLINE, EVEN THOUGH THAT THE
HAIL, ACCORDING TO THE
INSURANCE COMPANY, DIDN’T
DAMAGE A BRAND NEW ROOF. THE
DAMAGE TO 20 YEAR-OLD RUTH. DO
YOU FEEL LIKE THAT IS
SOMETHING THAT LAWMAKERS HERE
IN THE STATE OF FLORIDA NEED
TO ADDRESS? GET SOME
REGULATION IN PLACE TOO. MAKE
THAT NOT A CASE BECAUSE YOU
CAN UNDERSTAND THAT SIDE OF IT
RIGHT?
>> OF AND WHAT’S FUNNY ABOUT
THOSE AGE OF THE ROOF RACK,
THOSE ARGUMENTS IS THAT, YOU
KNOW, I LAST YEAR I TRIED 7
JURY TRIALS ALONE DEALING WITH
THIS ISSUE AND THROUGHOUT THE
HUNDREDS OF CLAIMS I HANDLE WE
HAVE TO HIRE EXPERTS, RIGHT?
YOU KNOW, YOU HAVE TO GET
SOMEBODY OUT THERE THAT HAS
THE QUALIFICATIONS TO SAY,
HEY, THIS WAS EITHER CAUSED BY
THE EVENT WASN’T CAUSED BY THE
EVENT. AND OBVIOUSLY WITH
THAT, THE EXPERT BEN TESTIFIES
TO THE AGE AND CONDITION OF
THE ROOF. RIGHT? AND SO
CONSISTENTLY, EVEN WITH THE
INSURANCE COMPANIES THAT
ENGINEERS AND EXPERTS,
EVERYBODY KIND OF SAYS A
SHINGLE ROOF IS 20 TO 25 YEARS
LIFE. RIGHT? AND THEN A TILE
ROOF IS 25 TO 30 FLAT ROOFS
CAN LAST, YOU KNOW, 50 YEARS.
SO IN ADDITION TO THE FACT
THAT, YOU KNOW, YOU MIGHT JUST
WANT WHEN YOU’RE OVER. THAT
WAS DAMAGED BY HAIL THAT
DOESN’T NECESSARILY EXCLUDE
COVERAGE AND THAT’S NOT
EXCLUDED UNDER THE POLICY. IF
THERE WAS IF THE ROOF WAS IN
GOOD CONDITION OF THE TIME,
THE HEALTH FROM WHAT IT WAS 20
OR 22 YEARS OLD AND THE HAIL
OBVIOUSLY, YOU KNOW, THAT RATE
OF SOME OF ITS EXPECTED
LIFESPAN. THE POLICIES
ACTUALLY PROVIDE COVERAGE FOR
THAT. BUT I DO UNDERSTAND
WE’RE SAYING IN TERMS OF, YOU
KNOW, WE HEAR A LOT OF THESE
ADVERTISEMENTS THAT YOU’LL
JUST GET A NEW ROOF. YOU’LL
GET A NEW ROOF. YOU’LL GET A
NEW QUIET. I MEAN, MY FRIEND
CASES LIKE THAT. YOU KNOW,
OBVIOUSLY, LIKE I SAID BEFORE,
THERE’S THERE’S ALWAYS BAD
ACTORS. AND, YOU KNOW, EVERY
PROFESSION, RIGHT? WHAT WOULD
YOUR ADVICE BE TO, YOU KNOW,
SOMEONE WHO GETS DROPS. LET’S
JUST SAY THAT THEY GOT THE
POLICY AND I’M NOT RENEWED.
BUT EVERYTHING ELSE ON THEIR
HOUSES SEEMINGLY
>> THEY HAVE A FAIRLY NEW MAY
WAS JUST A 5 TO 8 YEARS OLD.
EVERYTHING IS UP TO PAR. AND
THERE ENSURE DROPS THEM. AND
NOW THEY’RE SCRAMBLING TO FIND
THAT INSURANCE. WHAT WOULD
THAT? WHAT WOULD YOU TELL THAT
AND BECAUSE IT SEEMS LIKE A
LOT OF FOLKS ARE RESORTING TO
THUS THE STATE-BACKED CITIZENS
INSURANCE.
>> I HAVE CONVERSATIONS A LOT
OF CLIENTS ABOUT THIS.
UNFORTUNATELY IN LOOK,
INSURANCE COMPANIES HAVE TAKEN
A HARD LINE APPROACH IN THIS
YEAR. AND I THINK THAT’S WHY
WE’RE FEELING IT THIS YEAR.
RIGHT? WE’VE GOT MORE LETTERS.
I MEAN, ALL HAVE A CASE WHERE
THEY’RE DENYING ANY TYPE OF
DAMAGE TO THE RIVER CENTER.
ROOF IS IN GOOD SHAPE. THERE’S
NO ISSUES WITH THE ROOF IN
MIKE LANE. THEN WHEN THE
POLICY COMES UP FOR RENEWAL,
MY CLIENTS ARE GETTING LETTERS
THAT ARE SAYING YOUR ROOF IS
DAMAGED AND OLD GET REPLACED.
OTHERWISE WE DROP THEM, RIGHT.
SO I MEAN, THAT REALLY DOESN’T
MAKE SENSE. WHEN YOU’RE
TELLING I CLAIM MY CLIENTS
ROOF IS GOOD. SO THE THE ISSUE
THAT WE HAVE HERE AND IT WAS
ACTUALLY POINT OF SUN
STATISTICS IS I THINK WE’RE A
LOT OF THIS COMES INTO IS THAT
INSURANCE COMPANIES ARE SEEING
PROFIT MARGIN SHRANK. THEY’RE
NOT SEEING A SITUATION WHERE
THEY’RE ON THE VERGE OF
BANKRUPTCY, ALBEIT THERE WERE
A COUPLE, BUT THEY’RE SEEING
PROFIT MARGIN SHRINKS. SO YOU
CAN GO ON A WEBSITE CALLED M
ATTACK AND THE INSURANCE
COMPANIES ARE REQUIRED TO, YOU
KNOW, LIST THE TYPE OF MONEY
THAT THEY’VE MADE, THE TYPE OF
ASSETS THEY HAVE IN ORDER TO
PAY CLAIMS. SO YOU LOOK AT
LIKE, YOU KNOW, TOWER HILL IS
ONE OF THE BIG ONES IN
FLORIDA. THEY HAVE OVER
231 MILLION DOLLARS IN ASSETS.
THE BLAKE PAY CLAIMS NOW THAT
WIND DOWN FROM THE PREVIOUS
YEAR, 282 MILLION. ALL RIGHT.
SAME THING WITH SECURITY FIRST
AND 180 MILLION IN ASSETS TO
PAY CLAIMS. NOW THEY ARE IN A
WORLD THAT’S DOWN FROM LAST
YEAR WAS 215 MILLION. SO I
THINK THE ISSUE THAT THEY’RE
HAVING IS THEY’RE SEEING A
DECREASE IN THEIR PROFIT
MARGINS. AND AS A RESULT OF
THAT ARE OVERREACTING AND
THEY’RE DROPPING A LOT OF
POLICIES AND A LOT OF RISK
BECAUSE MAYBE THEY’VE WRITTEN
TO MANY POLICIES IN THAT AREA.
AND NOW THEY’RE LOOKING AT FOR
MAJOR STORM COMES THROUGH THIS
YEAR. THEY’RE GOING TO LOSE
THAT. BUT THIS IS A
CONVERSATION. I BASICALLY HAVE
A HOMEOWNER’S EVERY DAY AND
THERE’S REALLY NOBODY ANSWER
BECAUSE ALL OF THE CARRIERS OF
KIND OF I WANT JOIN FORCES.
BUT THEY’RE ALL ACTING THE
SAME WET, RIGHT OR THEY’RE NOT
RENEWING. IF YOUR ROOF IS OVER
15 YEARS OLD, WHICH DOESN’T
MAKE ANY SENSE. BECAUSE LIKE I
SAID, OVERCOME LAST 20 TO 25
TILE. 25 TO 30. YOU KNOW,
THEY’RE THEY’RE BASICALLY GOT
UPC JUST ANNOUNCED THEY’RE NOT
GOING RIGHT IN FLORIDA
ANYMORE. SO IT’S ALL OF THESE
DIFFERENT SITUATIONS. AND
REALLY THE HOMEOWNERS THAT ARE
ALIGNED THEIR BROKER TO TRY TO
FIND SOME INSURANCE TO COVER
THEM, AT LEAST IN ESPECIALLY
FOR THE MIDDLE OF THE
CLAIMANTS ARE CLAIMS ARE SMALL
AND THEY GET A NEW ROOF AND
HOPEFULLY THAT HELPS THEM.
>> JONATHAN: NOW, AS WE’VE
TOLD YOU, FLORIDA LAWMAKERS
ARE CALLING FOR A SPECIAL
SESSION TO REFORM THE
HOMEOWNERS INSURANCE MARKET.
COMING UP, TALLY WILL EXPLAIN
WHY HE’S CONCERNED ABOUT THE
PROPOSED LEGISLATION RIGHT
>> THIS IS THE WEEKLY ON CLICK, ORLANDO DOT COM WITH JUSTIN WARMOTH.
>> JONATHAN: WELCOME BACK.
INSURANCE COMPANIES PROTECTING
FLORIDA’S HOMEOWNERS ARE GOING
UNDER 7 OF THE STATES CARRIERS
HAVE BECOME INSOLVENT IN
RECENT WEEKS. MEANWHILE,
AGENCIES THAT ARE STILL AFLOAT
ARE DOING WHAT THEY CAN TO
STAY THERE BY INCREASING
PREMIUMS, DROPPING POLICIES
AND REFUSING ANY NEW BUSINESS.
THE BOTTOM LINE, THE STATE’S
INSURANCE MARKET IS SPIRALING.
JOHN PROPERTY INSURANCE
ATTORNEYS BACK NOW AND SAYS
THE NARRATIVE AT THE CRISIS IS
BEING CAUSED BY HOMEOWNERS.
FILING LAWSUITS IS UNFAIR. SO
TO BE CLEAR.
>> YOU DON’T THINK THAT THE
FLORIDA PROPERTY INSURANCE
MARKET IS ON THE BRINK OF
COLLAPSE AS MANY OF THESE
INSURANCE COMPANIES THAT SET.
>> I THINK IT DEPENDS ON THE
INSURANCE COMPANY, RIGHT? SO
IN ADDITION TO THE FACT OF
THEM HAVING TO HAVE ASSETS
THAT WILL COVER WHATEVER YOU
KNOW, POLICIES THEY’VE
WRITTEN, THEY HAVE TO HAVE
WHAT’S CALLED THE REINSURANCE.
SO REINSURANCE IS THE
INSURANCE FOR THE INSURANCE
COMPANY. SO AFTER THEY HIT,
BUT SAFE WORKING ON RIGHT. A
LOT OF THESE COMPANIES HAVE
REINSURANCE. NOW IT’S THEIR
RESPONSIBILITY TO BUY ENOUGH
REINSURANCE. SO AFTER THEY HIT
A CERTAIN THRESHOLD, LET’S SAY
IT’S A MILLION DOLLARS IN
UNPAID CLAIMS UNDER HURRICANE
IRMA. THEN THE INSURANCE THE
REINSURANCE COMPANY COMES IN
AND STARTS TO PAY. THE
REMAINING CLAIMS OUT AS WELL.
SO IT’S NOT A SITUATION WHERE
THEY’RE JUST SITTING HERE AND
THEY’RE PAYING THEIR NET
ASSETS TO ALL THE CLAIMS. THEY
ACTUALLY HAVE THEIR OWN
INSURANCE THAT THEN COMES IN
AND HELPS THEM FINANCIALLY. SO
I DON’T THINK THAT A LOT OF
THESE COMPANIES ARE ON THE
BRINK OF, YOU KNOW, BANKRUPTCY
OR DISSOLVING. OBVIOUSLY THERE
ARE SOME IN THE STATE OF
FLORIDA AND WE HAVE TO ASK
OURSELVES WHY IS THAT A
SITUATION IS RIGHT, TOO MANY
POLICIES AND THEN EVAN OF
ASSETS KNOWING YOU DID IT IS
THAT SITUATION BECAUSE YOU
DIDN’T BUY ENOUGH FREE
INSURANCE AT THE TIME. SO, YOU
KNOW, OBVIOUSLY I UNDERSTAND
THEIR CONCERNS, BUT THERE’S
ALSO 2 SIDES EVERY ARGUMENT.
AND I THINK THOSE ARE SOME OF
THE FACTORS THAT ARE
CONSIDERED IN THESE COMPANIES
ARE GOING BELLY UP. YOU KNOW,
AVATAR JUST WENT BELLY UP THIS
PAST YEAR AND YOU CAN ASK ANY
LAWYER THAT GOES AGAINST
ABBOTT ARE THEY ARE THE MOST
DIFFICULT INSURANCE COMPANY TO
WORK WITH. MOST OF THE CLAIMS
ARE DENIED MOST OF THE CLAIMS
LITIGATION. AND THEY DO NOT
SETTLE CLAIMS. I MEAN, A LOT
OF PLAINTIFFS LAWYERS DON’T
EVEN TAKE AVATAR CLAIMS
BECAUSE THEY KNOW THAT YOU’RE
TALKING ABOUT 3, 4 YEARS OF
LITIGATION, A JURY TRIAL. AND
THEN AFTER THE JURY TRIAL, 2
YEARS OF AN APPEAL BEFORE IN A
PLAINTIFF MIGHT EVEN SEE ONE
DOLLAR. YOU KNOW, I KNOW WE
HAVE.
>> FLORIDA HAS ITS EVERYONE
KNOWS THAT. BUT WE’RE NOT THE
ONLY STATE THAT HAS SEVERE
WEATHER LIKE WE DO AND HAIL
AND THINGS LIKE THAT. SO WHY
DOES FLORIDA MAKE UP SUCH A
LARGE PERCENTAGE OF THE CLAIMS
NATIONWIDE IS WHAT? WHY IS IT
SO I GUESS EASY TO TO DO THIS
COMPARED TO OTHER STATES.
>> SO THERE’S A NUMBER OF
DIFFERENT FACTORS WITH REGARD
TO BECAUSE I DO PRACTICE IN
NEW YORK, NEW JERSEY,
PENNSYLVANIA FLOOR, AND THERE
ARE LESS CASES IN THOSE 3
STATES OTHER THAN FLORIDA.
NOW, A NUMBER OF THOSE
DIFFERENT FACTORS OF THIS, A
LOT OF WHITE PLAINS UP NORTH
FOR IS ALL ABOUT HAVING TO GO
TO NATION. RIGHT? A LOT. IT’S
A LOT EASIER. FLORIDA HAS
DIFFERENT LAWS. SO FLORIDA HAS
A LAW THAT MAKES SENSE FOR
FLORIDA RIGHT? AND MORE THAN
25% OF YOUR ROOF TO BE
REPAIRED OR REPLACED WITHIN
ONE YEAR. THEN THE WHOLE
THING’S GOT TO BE REPLACED
THINK ABOUT IT, RIGHT? IF
WE’RE GOING UP THERE.
PATCHWORK ROOF OF THE
HURRICANE COMES THROUGH. WE
DON’T WANT THE SHINGLES THAT
ARE ON THE OTHER PART OF THE
ROOF TO FLY OFF DURING
HURRICANE HIT SOMEBODY ELSE’S
HOUSE AND THEN FLOOR ALSO HAS
WE CALL A MATCHING STATUTE. SO
THAT MEANS THAT THE INSURANCE
COMPANY DECIDES TO INSURE YOUR
HOME AND THOSE LET’S SAY THE
TILES THAT MAKE UP TOWERS OR
DISCONTINUE, WHICH A LOT OF
THEM WERE BECAUSE THE MAJOR
PRODUCER, LORD OF THE TILES
BACK IN LIKE THE MID 2,
THOUSANDS WAS BOUGHT OUT AND
THEY DON’T REPRODUCE THOSE
TITLES. SO BECAUSE OF THAT,
THE INSURANCE COMPANY HAS TO
PAY FOR MATCH AND THEY HAVE
THEM. THEY HAVE TO MATCH WHAT
YOU HAVE IF THEY CAN’T, THEN
YOU PICK OUT A DIFFERENT TIME.
AND THE HOLDER OF OBVIOUSLY
GETS REPLACED. SO THAT’S A
NUMBER OF DIFFERENT FACTORS
THAT PROBABLY LEADS TO MORE
LITIGATION BECAUSE THE
INSURANCE COMPANY IS GOING TO
TRY TO NO YOU TO GET UP THERE
AND JUST SPOT REPAIR. THIS
ROOF, YOU KNOW, DOESN’T MATTER
IF YOU WEAKEN THE ROOF BY
PULLING UP THESE FASTENERS.
AND THEN THE OTHER THING WITH
THAT AND THE THING THAT THE
INSURANCE COMPANIES REALLY
GOING HARD AGAINST IS
STATUTORY TOURNEY SPEED. SO
THE WAY I GET PAID AFTER I
FILE A LAWSUIT IS THE
INSURANCE COMPANY HAS TO PAY
ME IF WE PREVAIL RIGHT NOW. A
LOT OF PEOPLE THINK THAT’S A
BAD THING. THEY SAY ALL THAT
INCENTIVIZES LAWYERS TO FILE
LAWSUITS. BUT WE HAVE TO THINK
ABOUT IS THIS I PRACTICE IN
NEW YORK, NEW JERSEY,
PENNSYLVANIA, AND MORE OFTEN
THAN NOT. I HAVE CONVERSATIONS
WITH HOMEOWNERS THAT THE
INSURANCE COMPANIES DOING THE
WRONG THING THAT THEY SHOULD
GET PAID. BUT IT’S A 10,
$15,000 CLAIM. AND I’VE GOT A
LOOK AT THE HOMEOWNER AND TELL
THEM PAY IF I BRING YOUR CASE
ALL THE WAY TO TRIAL, I’M
GOING TO SPEND 20 TO $25,000
JUST TO LITIGATE THE CASE.
YOU’RE GOING TO HAVE NOTHING
LEFT OVER. SO IT’S NOT WORTH
IT FOR YOU TO GO TO
LITIGATION. SO IT ACTUALLY
ALLOWS NOT HAVING ATTORNEYS.
THE STATUTE ALLOWS THE
INSURANCE COMPANY TO KIND OF
GET AWAY WITH THE 9 CLAIMS
BECAUSE THERE’S NO HAMMER IF
THEY ACT IN BAD FAITH AND
DON’T PROPERLY ADJUST THE
CLAIM. FUNNY BROUGHT THAT UP
BECAUSE THAT WAS ONE OF THE
E-MAILS. ONE OF THE MANY
E-MAILS I GOT AFTER LAST
WEEKLY AIRED WAS THAT
ATTORNEYS FEES ARE PLAYING A
ROLE AS WELL AS YOU SAY,
>> $25,000 NEEDS TO GO TO A
NEW ROOF. THE ATTORNEY MAKES
25,000 JUST FOR GOING THROUGH
THAT. AND THAT IS A
CONTRIBUTING FACTOR TO THE
CRISIS. AND SO YOU POINTED OUT
THAT. THAT’S NOT THE CASE. I
MEAN, JUST TO BE CLEAR HERE.
>> WELL, SO WHAT I WANT TO
TALK ABOUT WITH INTER
ATTORNEYS FEES, I THINK IT’S I
THINK IT’S ACTUALLY A GOOD
THING FOR HOMEOWNERS BECAUSE
IT DOES HAVE A HAMMER EFFECT
ON THE INSURANCE CARRIER. YOU
KNOW, I TRIED 7 JURY TRIALS
LAST YEAR, RIGHT? WE WENT ALL
THE WAY 3 YEARS OF LITIGATION,
ALL THE WAY TO JURY TRIAL. WE
WON A VAST MAJORITY OF THOSE
CASES. YOU KNOW, YOU’RE
TALKING TO MY LAST FOR A
TROUBLING TREND. COMPANY
REFUSED TO NEGOTIATE WITH US
AT OUR ESTIMATE WAS RIDICULOUS
THAT THERE WAS NO DAMAGE. IT
WASN’T A COVERED LOSS. THE
JURY AWARDED OVER $100,000 FOR
THE ROOF TO BE REPLACE. THEY
ACTUALLY WERE MORE THAN OUR
ESTIMATE. AND THEN YEAH, OF
COURSE, AT THAT TIME AFTER
WE’VE LITIGATOR FOR 3 YEARS,
WE’VE DEPOSE THEIR FULL 2
EXPERTS. 4 TIMES. ALL RIGHT.
WE’RE GOING TO HAVE A LOT OF
COST IN THAT CASE. BUT THE
VAST MAJORITY OF CASES, I
DON’T MAKE MORE THAN WHAT THE
ROOF. THAT’S RIGHT. YOU KNOW,
THE VAST MAJORITY OF THE
CASES, MY CLIENT GETS A CHECK
FOR WHATEVER THE ROOF AS
WHATEVER THE INTERIOR DAMAGES
ARE. AND THEN MY STATUTORY
FEES DON’T COME ANYWHERE NEAR
THAT. YOU KNOW THAT THE
PROBLEM IS A LOT OF THESE
SETTLEMENTS ARE CONFIDENTIAL.
SO I CAN’T DISCLOSE, YOU KNOW,
HOW MUCH I MAKE ON A WHAT
YOU’RE SEEING IS WITH THE
INSURANCE COMPANY WANT TO SEE
IN THAT AFTER WE’VE LITIGATED
THE CASE FOR 3 YEARS, I
ADVANCE THE COST OF EXPERTS,
YOU KNOW, EXPERTS COST 5 TO
$10,000 IN CASE AND THEN THIS
STATUTE ALLOWS US TO RECOVER
THAT IF WE PREVAIL. AND SO,
YOU KNOW, THAT’S WHAT THEY’RE
SHOWING IS THEY’RE SHOWING
THESE LARGE ATTORNEY BILLS
AFTER THEY’VE DENIED THE CLAIM
FOR 3 YEARS AND THAT THE JURY
ACTUALLY CAME BACK AND SAID,
YOU KNOW WHAT, THE INTERNS,
SOMETHING WAS WRONG. SO I
THINK THAT’S FOR THE LARGE
MAJORITY OF COMPLAINTS COME
FROM. BUT MOST MORE OFTEN THAN
NOT. I MEAN, UNLESS IT’S A
CRAZY CASE FOR RESOLVING IT
THE DAY BEFORE TRIAL, WE’RE
NOT YOU KNOW, MORE THAN THE
INSURER A LOT MORE THAN THE
INSURED LIKE THE INSURANCE
COMPANY BILLY WANT TO END WITH
THIS.
>> HOW BEING ON BOTH SIDES OF
THE COIN IS THERE SOMETHING
THAT YOU BELIEVE NEEDS TO
HAPPEN HERE IN THE STATE OF
FLORIDA WHEN IT COMES TO
PROPERTY INSURANCE AND
REGULATION REFORM AND WHAT
WOULD THAT BE? ABSOLUTELY.
HERE’S THAT THAT.
>> THE INSURANCE COMPANY HAS
MILLIONS OF DOLLARS. THEY’VE
LOBBYIST AND THEY GO UP THERE
AND A LOT OF THE REFORM THAT’S
BEING PROPOSED IS ONE SIDE,
RIGHT? IT’S JUST FROM THE
INSURANCE CARRIER. AND IT
MAKES SENSE, RIGHT? BECAUSE,
YOU KNOW, I THINK THAT A GROUP
HOMEOWNERS TO GET TOGETHER AND
CREATE LIKE UNLESS THAT A
LOBBYIST PACK AND GO UP THERE
AND SPEND AS MUCH MONEY AS THE
INSURANCE COMPANY. THERE’S A
COUPLE DIFFERENT THINGS. YOU
KNOW, ONE OF THE MAJOR SENATOR
ON THIS ACTUALLY OWNS AN
INSURANCE BROKERAGE COMPANY.
SO HE HAS A FINANCIAL
INCENTIVE TO RIGHT FAVORABLE
AT LEGISLATION FOR INSURANCE
COMPANY. AND THEN THE OTHER
THING WITH THAT IS THE
INSURANCE COMPANY GETS TO HIDE
BEHIND A LOT OF DIFFERENT WAS
THAT THEY’VE HELPED GET PASS.
FOR INSTANCE, LET’S SAY THAT
YOU JUST GOT POLICY, RIGHT? SO
SOMEBODY FROM THE INSURANCE
COMPANY OR SOME INSPECTOR WAS
HIRED TO GO OUT AND LOOK AT
YOUR ROUTE, RIGHT? BECAUSE YOU
PART OF A 4 POINT INSPECTION
AND YET BECAUSE OF THAT
INSPECTION, THE REFER SENT,
THE INSPECTORS SAID, HEY,
YOU’VE GOT 5 TO 10 YEARS LIFE
LEFT ON THIS ROOF. THE ROOF
LOOKS GREAT. INSURANCE COMPANY
ENSURES THAT. WELL, WHEN YOU
MAKE THE CLAIM 2 MONTHS LATER,
THE INSURANCE COMPANY SAYS NO
THAT’S RELATED TO WEAR AND
TEAR. AND IT’S A LONG-TERM
ISSUE HAD THAT THE ROOF. WELL,
THE LAW ACTUALLY ALLOWS THEM
TO NOT DISCLOSE THAT REPORT
AND HIGH THAT REPORT
THROUGHOUT LITIGATION. AND
BECAUSE OF THAT, WE CAN’T GET
THE EVIDENCE WE NEED THAT
WOULD SHOW THE JURY. WELL, HOW
COME THEY WROTE A POLICY 2
MONTHS AGO AND SAID THE ROOF
WAS GOOD AND NOW THEY’RE
TELLING US 2 MONTHS LATER THE
ROOF IS BAT. SO, YES, I MEAN,
THERE NEEDS TO BE SOME REFORM,
BUT THERE NEEDS TO BE REFORM
AND HE USE EITHER NEEDS TO BE
SOME BALANCE. YOU DON’T GET
TO, YOU KNOW, WRITE LESS
COVERAGE, MAKE HOMEOWNERS PAY
MORE MONEY AND THEN HIDE
EVIDENCE FROM THEM WHEN WE’RE
GOING THROUGH LITIGATION. I
MEAN, EVERY SINGLE ONE OF MY
CASES, I DO NOT GET THAT
REPORT. THE JUDGES ARE NOT
ALLOWED OR NOT ALLOWED US TO
GET IT BECAUSE THE CASE WAS
VERY CLEAR THAT THEY CAN GET
BASED ON A LOT OF LEGISLATION
THAT WAS PUSHED INSURANCE
CARRIERS.
>> AND WE KNOW THIS IS
SOMETHING SO MANY OF YOU ARE
DEALING WITH. SO IF YOUR
PREMIUM SPITE OR YOUR POLICY
GOT DROPPED, LET US KNOW ABOUT
IT. HEAD TO CLICKORLANDO DOT
COM SLASH INSIDER.
>> TO OUT THE SURVEY ABOUT HOW
YOU CAN IMPACT. I’M JUSTIN