A.M. BestTV: Florida Homeowners Insurers Deluged by Pass-Along Claimants

OLDWICK, N.J.--()--This A.M.BestTV episode explores Florida homeowners insurance carriers that say water mitigation companies that file insurance claims acquired from customers are driving up costs and raising premium rates. Click on http://www.ambest.com/v.asp?v=floridaclaims316 to view the entire program.

Florida has not experienced a major hurricane since Wilma in 2005; however, homeowners insurers are seeing an uptick in water claims.

“The challenge that Florida faces is one associated with assignment of benefits,” said Michael Koscielny Jr., director, underwriting, Florida Peninsula Insurance and president-elect, CPCU Society. “In South Florida, the challenge comes from those insurers that have legitimate water claims who often call a water mitigation company. .... In the process of settling some of those losses, some water mitigation companies will ask the insurer to sign an assignment of benefits,” continued Koscielny. He added that once the water mitigation company completes the work, the costs often are significantly higher than expected.

A.M. Best Assistant Vice President Rick Decker stated that this type of risk is new and is the type of item A.M. Best will ask an insurance company about when questioning it on its risk and enterprise risk management coverages.

Other people who appear in this episode include:

  • Barry Gilway, chief executive officer, Citizens Property Insurance Corporation.

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A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2016 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Lee McDonald
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561
lee.mcdonald@ambest.com

Contacts

A.M. Best
Lee McDonald
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561
lee.mcdonald@ambest.com