Examining the insurance problem in Florida
A new report from Clearsurance examines why Florida has the highest rate of unsatisfied homeowners insurance policyholders in the country.
Of all the hurricanes that impact the U.S., an overwhelming 40% hit Florida. So, it’s no surprise that Floridians were identified as the unhappiest homeowners insurance policyholders in the country according to new research from Clearsurance.
Because of the routinely extreme weather combined with other market conditions, many national insurance carriers have shutdown business in the Sunshine State, leaving only smaller Florida-based insurance companies to address the complex needs of residents.
These local, Florida-focused carriers have stepped up to fill in the void, but with serious limitations. Clearsurance researchers found that these local companies have not adequately covered damages or addressed claims, leaving some homeowners underinsured and frustrated.
Breaking down the problem
The average homeowners’ score among Florida users is 4.03, according to Clearsurance users. Even worse, Florida-focused consumers have an average rating of 3.57.
By comparison, Colorado, the second-least happy state, has an average score of 4.13, and West Virginia, the happiest state, has a score of 4.47.
Related: Flood insurance program may expire as lawmakers consider reforms
After reviewing 105,000 customer reviews, Clearsurance’s research found a host of reasons contributing to Florida consumers’ dissatisfaction, such as claim disputes, poor communication, rate increases and more.
In a statement, Mike Crow, CEO and founder of Clearsurance said, “With the 2018 hurricane season upon us, Florida consumers must be vigilant in their own research, education and diligence when shopping for insurance to be properly covered.”
Study highlights
Clearsurance researchers highlighted a number of key findings from their report. The study found that policyholders of local, Florida-focused companies have a higher percentage of claim disputes (more than 8%) than Florida-based policyholders of national companies (1.5%).
Nearly 7% of local Florida policyholder reviews talked about a miscommunication, compared to 2% of Florida-based national policyholder reviews.
Following Hurricane Irma, lawsuits filed against the state’s largest insurers rose significantly. For example, Universal Property & Casualty saw a 158.4% increase while State Farm saw a 32.7% increase.
The full Clearsurance report offers more in-depth details and analysis, and can be found on their website.
Related: Catastrophes unlike anything in past decade wallop U.S. insurers