Volusia Lawmakers See Insurance Claims Abuse Boosting Property Insurance Crisis
Asked what can be done about Florida’s growing property insurance challenges, lawmakers at a Volusia County forum on Thursday said the problems stem from lawsuits as well as fraud and abuse. ‘assurance.
Republican representatives. Webster Barnabas by Deltone and Tom leek of Ormond Beach characterized the home insurance problem as an issue that requires tort and regulatory reforms to reduce insurance fraud, insurance claims abuse and litigation.
Barnaby, who is on the House Insurance and Banking Subcommitteesaid he did not believe a comprehensive solution was possible at a special session, but expected the issue to be addressed next year.
Republican Senator from Saint Petersburg. Jeff Brandesand many Democrats, have requested a special session to deal with what they call the impending “crisis” in property insurance. They argue that many Florida homeowners are suffering from rapidly rising insurance rates and note some property insurance businesses collapsed Last year. This has made insurance increasingly difficult for homeowners to obtain.
Govt. Ron DeSantis said he would support a special session, and Brandes wants to force one.
On Thursday, Barnaby and Leek joined Sen. Thomas Wright of Port Orange and Rep. Elisabeth Fetterhoff of DeLand in a Volusia County Legislative Delegation Forum hosted by the Daytona Regional Chamber of Commerce at Daytona Beach. Wright and Fetterhoff did not answer the insurance question.
Barnaby began by saying that his conversations with insurance companies revolved around issues of car windshield cracks and water damage claims that all too often turned into more than reasonable claims. He said roofs are also a problem.
“The short answer is that we have a global problem that needs to be looked at thoroughly. Many are calling for a special session of the Legislative Assembly to examine rising homeowner costs for individuals. I think it has to be more than just a special session,” Barnaby said.
Leek chimed in, saying roof damage claims brought by roofing companies are overwhelming insurers, accounting for nearly 80% of all claims and 80% of all roof-related disputes, indicating that the roofing industry has “taken over”.
“It is not a question of offering a new roof to the insured. It’s about everyone making money in this process,” Leek said.