One area for confusion, he noted, is the issue of depreciation holdbacks. Florida homeowners' insurance policies contain a provision that entitles the policyholder to the full replacement cost for their home and contents without any depreciation for materials used, Mr. Gallagher said.

However, insurers can impose a holdback provision and initially pay a fractional or actual cash value amount. But they must explain the procedure for recovering the remainder of the costs of the loss. Homeowners who have replacement cost coverage will get the amount of money it costs to complete their repairs or to replace destroyed contents, minus what is referred to as recoverable depreciation.

"If a homeowner did not refuse this coverage, in writing, when the policy was purchased, then the replacement cost coverage of the structure is automatically included," Mr. Gallagher said in a written statement.

William Stander, regional manager for the Property Casualty Insurers Association of America, said that replacement cost holdbacks are "time-tested policy provisions that play an important part in fraud prevention."

"I think I have a lot of members who are confused about why they are the subject of such condescension from the regulator after a costly hurricane season in which the industry came through with flying colors," he said.