Heritage Property & Casualty is one of the largest insurance companies in the state of Florida. If you’re a homeowner with a Heritage policy or someone who intends to purchase one through the insurer, you may be in for a surprise. According to a recent Sun Sentinel article, the insurer intends to increase rates for existing and future policyholders this year.
The reason why Heritage is seeking double-digit rate increases is the same reason that’s been used by other insurance companies covering the state of Florida: assignment of benefits (AOB). AOB is when repair contractors convince policyholders to sign over the right to directly bill insurers for repairs made to their homes. In turn, contractors perform unnecessary work, submitting overpriced invoices to insurance companies.
Should Heritage’s rate increase requests be approved by the Florida Office of Insurance Regulation, thousands of homeowners will be affected, including the more than 90,000 customers that were once covered under the state-run Citizens Property & Casualty. These customers (which Heritage has dubbed “Select”) were assumed by Heritage as part of Florida’s “takeout” program. Their rates could increase by more than thirteen percent beginning on May 1. Heritage’s 60,000+ “Preferred” policyholders would also see their rates increase after July 1.
This information is provided by Miami insurance lawyer Alonso & Perez, LLP. Our areas of practice include bankruptcy, insurance litigation, foreclosure defense, immigration law, and more. Call 305-676-7545 to speak with one of our attorneys such as our Miami bankruptcy lawyer 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.