Feeling a Gut Punch
TL/DR –
Florida homeowners are facing a crisis as insurance firms denied over half of all claims in 2024, with some companies such as People’s Trust and State Farm Florida denying up to 75.4% and 60% of claims respectively. This insurance crisis is linked to the rising costs associated with climate inaction, with the burning of ‘dirty energy’ sources such as oil, coal, and gas triggering more destructive storms, hence more claims and fewer payouts. To address the issue, the Florida Office of Insurance Regulation and legislators have stepped up enforcement, with some companies like Heritage Insurance being fined and others ordered to return millions after submitting fraudulent claims, while new insurers have entered the market due to reforms to make the state more business-friendly.
In Florida, homeowners grapple with hurricane season but face limited insurance protections.
Florida is gearing up for its impending hurricane season, but homeowners are left in the lurch with insurance companies denying claims.
According to the Tallahassee Democrat, a report by Weiss Ratings shows that 14 Florida insurers rejected over half of all claims filed in 2024.
Increasingly destructive storms due to the climate crisis are causing more damage, and insurance companies are denying claims and increasing rates. Consequently, storm-prone areas like Florida are left vulnerable.
Addressing the insurance crisis
The Florida Office of Insurance Regulation is enforcing stricter regulations. Heritage Insurance was fined $1 million, and Universal Property & Casualty Insurance was mandated to return over $30 million after submitting fraudulent claims.
Thanks to reforms, new insurers are entering the market. Organizations like Rewiring America are assisting households to transition from dirty energy, reducing pollution and extreme storm risk.
Though we can’t stop hurricanes, we can ensure insurance accountability, reduce pollution and explore climate issues.
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