Lawsuit Abuse Affecting Homeowners Insurance

I read with interest, the main editorial in the Sunday, Feb. 13, Chronicle regarding homeowner's insurance. As a 30-plus year professional in the trust and insurance business, I would like to outline why we were all experiencing insurance sticker shock and worse, mass cancellations.

Pay close attention, this is a very serious issue for Florida homeowners. Florida homeowner insurance is double the national average and it's not because of weather, it's "lawsuit abuse." Between 2013 and 2020, Florida's property insurers paid out $15 billion in claims costs, but only 8% of that was paid to the homeowner, while 71% was paid to attorneys.

In the past three months, several prominent companies have said they will stop writing new homeowner policies or won't renew tens of thousands. That doesn't include the past year of the other numerous companies that have changed their underwriting guidelines or closed up shop because of insolvency. For most people, their biggest asset is their home, and you purchase insurance to protect that investment from the catastrophic claim.

If our lawmakers don't succeed in fixing this problem you won't be able to afford the premium. I'm sure you can only imagine the effect this will have on the real estate market or your investment. I implore you to be very diligent about reviewing your homeowner policy coverages. With the massive underwriting changes by the carriers make sure you are purchasing the correct coverage to protect your investment. If you think you have a claim, call your agent first. Citrus County is blessed to have great insurance agencies, which are superior to calling an 800 number.

Lawsuit abuse impacts Floridians beyond homeowners. In 2019, a study was conducted and found that frivolous lawsuits also cost our state 126,139 jobs and nearly $615 million in annual state revenues. Florida ranks 46 out of 50 and is one of the top five worst states for unfair and unreasonable legal environments.

We are blessed to have a legislative delegation in Tallahassee that understands this issue and the impact it has on our citizens. We need to send more, with the courage to take on the special interests, to Tallahassee to protect us.

Rebecca Bays

Insurance agent