Are Insurance Companies Responsible for Their Current Situation?

  • Are Insurance Companies Responsible for Their Current Situation?

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    Florida’s major insurance companies are currently trying to convince state lawmakers that the market is becoming increasingly unstable because of water damage claims, forcing them to up their rates. However, many insurers also appear to be shorting contractors that have completed work on claims that are legitimate, sometimes paying them up to 75 percent less than the cost of work or labor involved. Because of this, there are numerous lawsuits being filed that are costing more than the original claim.

    Should an insurer lose such a lawsuit, it is responsible for paying the attorney fees. To cover these costs, consumers are being forced to pay higher premiums. Is it possible this so-called crisis is something the insurers have created? How much money are they paying in legal fees? Why are they denying valid claims that lead to these costly lawsuits?

    Perhaps a worthwhile solution would be for insurance companies to send out adjusters with the proper amount of training that already have an understanding of pricing systems for acceptable claims as well as the standards. Such a step could result in fewer claim discrepancies, leading to fewer lawsuits. Insurers should also make it a point to send out these adjusters no more than two days after a loss has been reported, versus weeks.

    This information is provided by Miami insurance attorney Alonso, Perez & Santos, LLP.  Our areas of practice include bankruptcy, insurance litigation, debt harassment, credit card defense, foreclosure defense, immigration law, condominium law, business start-ups, and more.  Call 305-676-7545 to speak with one of our attorneys and receive a free consultation We look forward to working with you.

    This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.

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