On this Waypoint Real Talk Podcast, John Shishilla, owner at Honor Services talks about a new proposed Florida bill that affects all Florida homeowners.

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What are the Current Issues With Florida Insurance Claims?

Today, a large number of homeowners have roofing contractors on their doorstep after a storm looking to make an insurance claim.

The contractor typically wants to inspect your roof for storm damage, whether from hail or wind, and then take out a claim on your home insurance for any damage they find.

The pros of this are the roofing contractor gets to sell a new roof, and you, the homeowner, get a free roof as long as you pay your insurance deductible.

Moreover, some roofing contractors ask the homeowners to sign off on a document that allows the contractor to pursue the insurance company in court on the homeowners’ behalf. This is to make the insurance company payout for a roof even if they denied your initial claim.

While this may seem like an awesome deal, it may not be. Insurance companies are put in difficult positions and ultimately may raise home insurance rates to cover their costs.

In fact, Florida insurance rates have been increasing significantly over the past few years, more than in the rest of the country. Source.

Michelle Mosher from SouthShore Insurance in Tampa Bay actually emailed me this:

Hi Aaron,I hope you’re doing well. Recently, I’ve had a lot of clients approach me with questions about why Florida’s property insurance rates are increasing so dramatically. In case you’ve been wondering the same thing, I wanted to share some insights on the matter and how you can get involved.Here’s an explanation of the rate increase:There are frivolous lawsuits being filed by trial attorneys with fee multipliers equal to 2-3 times the hourly rate for an average attorney. They are able to earn six-figure fees on a $10K settlement–none of which is shared with the policyholder.Thousands of claims are being reported with roof damage that appears to be general wear-and-tear or maintenance-related as opposed to damage with causes covered by peril insurance (including fire, lightning, windstorms, etc.). Costs are rising due to lawsuits being filed for damages caused by a hurricane that made landfall three years ago.The implications of the above have many businesses and homeowners calling for reform. Some of the most sought-after changes include ending fee multipliers for lawyers who are receiving egregious paydays from run-of-the-mill lawsuits, adding additional, affordable options for roof coverage for consumers, and reducing the statute of limitations for filing claims–meaning damage should be reported immediately, not 3-5 years after it occurs.Fortunately, there are actions we can take as citizens to try and combat these rate increases. Here are some simple ways you can make an impact:Reach out to your legislators today and let them know how much your premium has increased this year!Encourage their support of legislation that aims to achieve the much-needed reforms listed above.Follow the Floridians for Lawsuit Reform Advocacy Group and sign the petition to make your voice heard.Tell your family and friends about the cause–if they live in Florida, their premiums are also going up.