Unfortunately, insurance companies do not always act in their customers’ best interests. The year 2018 saw a number of insurers attempt to significantly raise premiums for customers, or drop their policies altogether due to a busy hurricane season.
Thousands of homeowners were dropped from policies due to hurricanes Michael and Irma
An investigation by a local news network in Florida found that about 80,000 residents in the state had their policies dropped in the third quarter of 2018. Many of these dropped customers were previously enrolled in policies with the state’s largest insurers, who ended up having a smaller number of customers by the end of the year. Others saw rate increases in the eight to ten percent range from smaller insurance companies that only provide policies to Florida residents.
Many of the insurance providers admitted that a large number of severe storms in the past two years is the primary cause of the problem. Hurricanes Michael and Irma were the worst to strike the state in years, and both caused significant losses and damages that insurance companies paid for. It is estimated that those two storms alone caused $15 billion worth of claims to go out. Water damage claims as a whole are also up in the state over the last few years, which has caused related insurance premiums to increase as well. Florida already has the highest home insurance costs in the nation, with the most policies costing double the national average.
Insurance experts recommend that homeowners do their own research and choose a provider that covers their needs at a reasonable cost. Although some mortgage companies will simply find a policy on their own for the homeowner unless they are told otherwise, it is best to look around for a good match. There are online tools that help homeowners compare policies. Some providers will also tell you if you can be dropped based on the information provided to them.
Insurance claim denials
Even though insurance companies profit off of customers, they do not always try to help them when it matters most. As this news report shows, companies engage in practices such as denying claims or dropping a customers policy altogether if they feel that their profit margins are being affected. When this happens, it is important to get legal representation to make sure the provider is not doing anything illegal or denying a claim in an attempt to save money rather than for a legitimate reason.
Speak with a local insurance claims lawyer
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