The Florida House Committee on Banking and Insurance seemed to have many constituents upset with delays and denials when I was testifying in front of them a month ago. The insurance representative tried to explain that many of the denials were because most policies do not cover flood.
Our firm was asked to represent a woman for water damage to her condominium unit. Florida Peninsula denied the claim because their investigation said flood water damage is not covered under the policy. She could not speak with the original field adjuster but was referred to somebody who was never at the unit. The client explained that her unit was on the third floor and no flood water could get that high. The desk adjuster said nothing could be done about it.
Many Florida insurance companies are sending form denial letters. This example and this type of denial is what is driving policyholders into a belief that insurance is a rip-off. This is the same type of form denial letter prevalent in health insurance many have received for years. The property insurance claims work product is now often the same as health insurance.
Delay, Deny, and Defend is a very real problem in Florida. For many claims, the amounts are small and many will simply have to live with the denial because the cost to collect what is owed is greater than what is owed.
Thought For The Day
“Never argue with stupid people. They will drag you down to their level and then beat you with experience.”
—Mark Twain
