Florida Property Insurers to Raise Rates
A vast number of property insurance providers in Florida have submitted legal requests to allow a double-digit rate increase which could reach 47%. The predicted downgrading in the financial ratings of some companies has sparked concerns leading to this request. As the State legislature gets ready to end current sessions, lawmakers are scurrying to have the reforms litigation passed. Contingency risk multipliers, which boost lawyer fees, would be targeted through bill HB 7071, which passed the House but was stalled in the Senate. According to a report in the Insurance Journal, many insurance providers in Florida may experience reductions in their financial ratings because of the ongoing struggles by companies when dealing with claims protocols and court rulings that differ from all other jurisdictions nationwide. As Joseph Petrelli stated to the Florida Record, “I don’t see downgrades or the litigation necessarily taking companies under. But what I do see in the level of litigation and types of (court) decisions that we’ve seen in the last six or seven years in Florida is the difference between ultimately for the companies being profitable and being unprofitable. But I don’t think it’s going to tank companies.” With the current financial scenario bleak for companies and their profit margins over the coming years, downgrades may not jeopardize their overall results. According to Petrelli, property owners may see a decrease in insurance options, but doubts Florida insurers will fail, with mergers and consolidations likely. He also states that short term rate increases will be large and benefit Florida insurers by giving them an improved foothold on Florida’s complicated situation when dealing with claims. According to Petrelli, insurance providers are in good shape and will be able to pay claims brought on by property owners.
From an Attorneys POV
Some attorneys believe that it is due to the insurance companies tactics of unfairly adjusting claims which has brought about these problems. Some insurers will fail to properly evaluate and pay claims in the hopes that they can under pay and save their profits. However, in so doing, they are playing a dangerous game, much like gambling. When insurance companies do not make reasonable offers, they typically get sued. When they get sued, their costs go up drastically, and they treat it much like financing a loan. They keep their money in their coffers, however, they continue to pay their lawyers to defend their undervaluing of the claim and, when they ultimately lose, they have to pay the other side’s lawyers as well the money they owed to begin with. Insurance companies are masters at twisting the media to their side and quick to blame litigation costs, but they fail to mention that litigation typically only happens when they under pay. Lawyers are not in the business of losing and do not generally go through the trouble and expense of filing law suits which they cannot win. If the problem is to be fixed, the law needs to stop allowing insurance companies to use the court system as a financing tool. Now, insurance providers are begging congress to allow them to make everyone pay for their business tactics. Lawyers don’t want to sue as it requires lots of valuable time and money, thus they would rather get their clients the compensation they are due and move on to the next case.
Real Estate Law
In Miami, the Perazzo Law Firm specializes in legal situations involving the sale, purchase, or transfer of property. We also handle insurance claims for compensation from property damage brought about by hurricanes and other external factors. If you, a friend, or relative is getting ready to buy, sell, or transfer property, the chances of a smooth sailing and hassle-free transaction improve greatly by the support of a professional real estate lawyer.
Some of the Real Estate related situations the Perazzo Law Firm handles:
- ATTORNMENT CLAUSE
- BANKRUPTCY CLAIMS
- COLLATERAL CLAIMS
- DEED OF TRUST
- ESCROW ACCOUNTS
- ESTOPPEL CERTIFICATES
- GUARANTY AND AGREEMENTS
- INTER-CREDITOR AGREEMENTS
- JUNIOR FINANCING
- LEASES-LEASEHOLD EARNINGS-LIENS-LOANS
- MORTGAGE LOANS & BROKERS
- NON-RECOURSE & CARVE-OUTS
- PITI (PRINCIPLE – INTERESTS – TAXES – INSURANCE)
- POWER OF SALE
- RESPA (REAL ESTATE SETTLEMENT PROCEDURES ACT)
- SECURITY AGREEMENTS
- SHORT SALES
- SUBORDINATING FEES
- TITLE INSURANCE
- YIELDING FEES
- AND MORE.
If you have questions about your Real Estate, Title, or Short Sale options, please contact our Miami-Dade Law offices ONLINE or CALL (786) LAWS-411 for a FREE initial consultation.
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