Six large Florida carriers flatly denied nearly 50% of howowner claims closed in 2023 including Castle Key Indemnity Company (denying 47.1%), State Farm Florida Insurance Company (46.4%), Castle Key Insurance Company (46%), and others, according to analysts at Weiss Ratings.
“Many Florida insurers are short on reserves because they’ve diverted funds to shareholders or to parent companies outside the state,” said Martin D. Weiss of Weiss Ratings. “ Thus, some are abusing their power to deny damage claims as a deliberate tactic to conserve cash and avoid bankruptcy.”
Flirida insuers closed 76.428 homewoner claims without making payments in 2023.
Concurrently the state government made it much harder 2023 for homeowners to sue insurance companies.
Weiss noted that a similar problem is spreading to other states with recurring high property damage.
By Staff
