- 04 Jan
Higher Insurance Premiums Go into Effect This Year
Countless Florida homeowners will feel the sting in their pocketbook this year as higher property insurance rates go into effect across the state. Florida’s top insurers such as Heritage and Citizens have received the necessary clearance from state regulators to increase their rates by as much as ten percent for residential homes.
Property insurers state the reasons behind the 2017 rate hikes are not due to the hurricanes that hit Florida in over a decade. The culprit behind the increase is the abuse in “assignment of benefits”, a topic we’ve previously discussed. Assignment of benefits involves a homeowner signing over his or her claim benefits to a contractor during an emergency, such as water leakage due to a ruptured or broken pipe. Less reputable contractors often abuse these benefits by inflating or misrepresenting the amount of damage. The problem originated here in South Florida, but it has since spread to other cities across the state like Orlando and Tampa.
Unfortunately, the unscrupulous actions of individuals attempting to cheat the system are forcing Florida homeowners to pay higher premiums. Legislation to address water claims fraud has been filed, but it has yet to gain a significant amount of traction.
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.