Trend raises concerns for Helene and Milton victims
By Kenneth Araullo Oct 08, 2024
Weiss Ratings, an independent rating agency, has warned that Florida homeowners filing legitimate claims for damage from Hurricanes Helene or Milton may face a high risk of denial from their insurance companies.
The agency’s analysis of official filings revealed that several large Florida insurers denied nearly half of homeowner claims closed in 2023. Among these carriers were Castle Key Indemnity Company, which denied 47.1% of claims, State Farm Florida Insurance Company at 46.4%, and Castle Key Insurance Company at 46%.
Weiss Ratings founder, Dr Martin Weiss, noted that some insurers are short on reserves, which he attributed to funds being diverted to shareholders or parent companies outside of Florida.
“Thus, some are abusing their power to deny damage claims as a deliberate tactic to conserve cash and avoid bankruptcy,” he said.
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