The Florida House committee recently gave the okay to a bill intended to reduce insurance rate hikes by tackling claims abuses. Despite proposed revisions, the bill still fails to address a major concern among the insurance industry: restrictions on collections of what’s called “one-way” insurance fees. These fees are collected by attorneys on behalf of contractors working under the highly controversial assignment of benefits (AOB). These fees have lead to a massive increase in litigation, expensive settlements, and skyrocketing premiums.
Even as the bill makes its progress, Florida homeowners face potentially nasty surprises as some of the state’s largest insurers seek to bump up their rates because of the ongoing issues with AOB. In fact, Citizens increased its rates by up to ten percent for 2017 renewals in the tri-county area.
Although many insurance companies specifically state in their policies that homeowners are bound to the company’s approved list of contractors, many homeowners still choose to hire their own contractors anyway, assigning them the benefits.
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.