Amid accusations that Florida’s property insurance companies, including state-backed Citizens Insurance, are deliberately paying only half their claims and “in a state of collapse,” comes new insight and fresh data that debunk the charges. The man behind the allegations is Martin Weiss of Weiss Ratings, who’s now the subject of an investigation by state insurance regulators.

Former Florida Deputy Insurance Commissioner Lisa Miller shares the new push-back from Citizens’ President & CEO on these accusations and sits down with the head of a large private insurance company who shares new data showing why these charges are inaccurate and unfair in what is a tightly-regulated marketplace.

Show Notes (For full Show Notes, visit https://lisamillerassociates.com/episode-54-the-truth-behind-the-50-claims-denial/
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The news stories emerged mere weeks after two devastating hurricanes – Helene and Milton – struck Florida, creating $5.3 billion in estimated insured losses in Florida as of late November 2024. Host Miller dives deep into the controversies and complexities surrounding the state-created Citizens Property Insurance Corporation and the broader Florida property insurance market on its claims handling and claims payment rates.

"The innuendo that's going around in the media space is that there is a suspicion that Citizens is trying to cheat its customers, and now forces are trying to extend that innuendo to Florida's private property insurance market companies,” said Miller. “In my opinion, that's just plain dishonest and unfair."

The program features soundbites from Weiss, Citizens Property Insurance President & CEO Tim Cerio, and a studio interview with Locke Burt, CEO and Chairman of Security First Insurance Company. Burt served in the Florida Senate for 12 years, where he helped write the laws that created Citizens and the Florida Hurricane Catastrophe Fund.

Weiss, in various November media reports, said that he’d reviewed Citizens Property Insurance 2023 annual financial statement and concluded that Citizens didn’t pay 50.4% of its 2023 claims. He said that was worse than any private insurance company’s no-pay rate. Weiss declined an invitation to appear on the podcast.

Burt and Cerio defended Citizens and the broader Florida insurance market against Weiss’ accusations, noting there are legitimate reasons claims are closed without payment. It's not always about denial. The reasons include:

• Claims that fall below the policyholder's deductible.
• Duplicate claims.
• Claims related to flood damage, which are not covered by standard homeowners' policies.

Weiss, in his criticism of Citizens, was quoted in the media as saying “One factor that we believe is probably playing a role is a deliberate strategy to reduce their liabilities for whatever reason.”

Cerio shot back at the December 4, 2024 Citizens Board of Governors meeting. “It's critical to just point out that, we are the state created, not for profit, insurer of last resort. We have no financial incentive to not play claims. Zero,” he said.

(For full Show Notes, visit https://lisamillerassociates.com/episode-54-the-truth-behind-the-50-claims-denial/
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Image credit: danielfela/Shutterstock

Why were some homes in Hurricanes Helene and Milton heavily damaged while others sustained little or no damage? Much of the answer lies with the building materials and techniques used in their construction.

Former Florida Deputy Insurance Commissioner Lisa Miller talks with a building science researcher, a building products manufacturer, and a developer whose homes survived unscathed from the hurricanes about how resilient construction can save money and insurance costs for both new and existing homes.

Show Notes (For full Show Notes, visit https://lisamillerassociates.com/episode-53-fortified-homes/)

Host Lisa Miller opened the discussion by highlighting the devastation caused by recent Hurricanes Helene and Milton, particularly in Florida. She emphasized the urgent need for homeowners to prepare their properties to withstand such disasters. “Everywhere I go in Florida, I see homes built with plywood and two-by-fours, and I affectionately say that these production homes are built with sticks. I don’t see how they withstand 150 mph winds,” said Miller, who is a disaster insurance and recovery expert. The focus of the episode is on using innovative building products and techniques to enhance the resilience of homes.

Fred Malik, Managing Director of the Fortified Program at the Insurance Institute for Business and Home Safety (IBHS), shared his expertise on building techniques and materials designed to minimize damage from natural disasters. He stressed the importance of rigorous building standards and inspections, noting that "you get what you inspect, not what you expect." Malik explained that homes built to the Fortified standard undergo thorough third-party inspections, ensuring that critical details are not overlooked. This certification process provides consumers with a way to differentiate between homes that may appear similar but have vastly different levels of resilience against severe weather.

Marshall Gobuty, Managing Director at Pearl Homes Developments, shares his firsthand experience with building resilient homes. He discusses his development, Hunter's Point in Cortez, Florida, which successfully withstood Hurricane Milton without any damage. Gobuty attributes this success to his innovative building practices, which include using a combination of block and poured concrete for foundations, as well as advanced insulation techniques that enhance the structural integrity of the homes.

Scott Lidberg, CEO of NEXGEN Building Products, introduced his company's innovative magnesium oxide-based building materials. He explained how these products can replace traditional materials like plywood and gypsum, offering superior resistance to impact, moisture, and fire.

(For full Show Notes, visit https://lisamillerassociates.com/episode-53-fortified-homes/)

What’s going on with property insurance in Florida? Specifically rates, coverage, condominiums, automobile insurance, telematics, flood insurance, and the reinsurance costs that carriers pass along to consumers.

Former Florida Deputy Insurance Commissioner Lisa Miller gets to the heart of the issues with three experienced insurance agents in South, Central, and North Florida who share their insights and suggestions on improving Florida’s challenging property insurance market.

Show Notes

Host Lisa Miller and guests discussed the high premiums affecting homeowners and auto insurance, driven by catastrophic weather, inflation, litigation, and reinsurance costs. Positive trends such as rate decreases and more flexible coverage options are highlighted. The conversation also covered the critical need for flood insurance and the role of the news media in educating the public about insurance complexities and how agents can help the media do so. The episode underscores the importance of transparency and proactive communication in the industry.

Miller’s guests each brought unique perspectives from different regions of Florida:

• Jay Wolfberg, President of We Insure, headquartered in Sunrise. Wolfberg has over a decade of experience in commercial and residential property insurance. He discusses positive trends in the market, including rate decreases and more creative coverage options.
• Anna Regina Myrrha, Agency Principal and Broker at American Insurance Pointe (AIP) in Orlando. Myrrha shares insights on the stabilization of rates and the importance of adapting coverage to meet clients' needs.
• Paul Lalonde, President of Insurance Wagon, a Jacksonville insurance agency. Lalonde provides a perspective on the homeowners as well as the commercial insurance market and the challenges posed by recent legislation affecting condominium insurance.

Overview of the Florida Insurance Market

Host Miller highlighted the current state of the Florida insurance market, where premiums for automobile, homeowners, and commercial insurance are at an all-time high. She identified four main factors driving these rates:

1. Catastrophic Weather: Florida's susceptibility to hurricanes and other severe weather events significantly impacts insurance costs.
2. Inflation: Rising costs of goods and services contribute to higher insurance premiums.
3. Litigation: Legal fees and settlements from lawsuits lead to increased insurance costs.
4. Reinsurance Costs: The cost of reinsurance, which insurers purchase to protect themselves from large claims, is a significant factor in premium pricing, comprising upward of 40% of a homeowners insurance premium.

Host Miller emphasized the uncertainty surrounding reinsurance costs, especially with the ongoing hurricane season, and the potential for higher rates if a significant hurricane occurs.

Positive Trends in Homeowners Insurance

Rate Decreases and Stabilization

Host Miller highlighted a recent report from the Florida Office of Insurance Regulation that 12 companies have requested rate decreases, while 25 have sought to maintain their current rates. For example, American Integrity Insurance Company has announced a nearly 7% rate decrease for a significant number of policyholders... (For full Show Notes, visit https://lisamillerassociates.com/episode-52-agent-roundtable/)