Why do Florida Homeowner Insurance Companies raise rates and deny claims?

As homeowners recuperate after a 19 percent statewide insurance rate increase that was implemented in mid 2011, Insurance premiums are expected to once again hike up across Florida as several carriers request a rate hike. For some Insurance carrier’s specifically private insurance companies, this will be the sixth rate hike in 2.5 years. Many homeowners find themselves troubled by this news and many are left with questions as to what may constitute continued increases in their premiums. What makes this situation especially troubling for some is that many homeowners have bundled policies that would make switching to another homeowner’s insurance provider a much greater burden, but what in fact is the cause of these increases and are these increases justifiable? As Miami insurance loss attorneys we understand the difficulties of raised premiums.

As experienced South Florida homeowner insurance attorneys we can list several contributing factors that lead to an increase in rates, one of them being the sudden recent increase of policies issued to the private market by and through State held and ran Insurance providers. With no recent Hurricanes, companies still wish to build cash reserves to prepare for a large claim event and this is primarily done through reinsurance. Reinsurance can prove to be extremely costly for consumers when compared to other ways of hedging in preparation for a large claim event. The fact of the matter is that after the devastating 2004-2005 hurricane season that hit Florida the cost of reinsurance dramatically increased. The cost of reinsurance is not the only contributing factor to increases in premiums, the rise of insurance fraud specifically in South Florida has caused many insurance companies to increase their premiums in order to cover such losses.

So what happens when honest law abiding citizens who continue to pay the high cost of insurance to protect their homes and who are inadvertently affected by not only the threat of large storms but the criminal acts of others, present a claim to their insurance provider and get denied? Just as there are various factors that may lead to the increases in premiums that we pay for our home owners insurance coverage such is the same for the denial of claims presented to those insurance providers. Many homeowners are not educated with the proper steps that should be taken in order to present a claim to their insurance provider, and this is a leading reason as to why some claims may be denied. Presenting the claim improperly leaves the Insurer no choice at times but to deny coverage no matter how long you have been paying their premiums. Many are under the impression that insurance companies deny claims because they don’t want to be the ones to foot the bill, although this may have happened or may be a habit of some of insurance companies the fact of the matter is that careful review is usually taken prior to the denial of an insurance claim and more than likely it may be due to an error made by the insured during the process of making a claim. Just as Insurance companies have attorneys so should their clients. Hiring an attorney should not be so as an anticipation of bad faith by your insurance carrier, rather a representation of this sort can be considered “insurance” for your insurance.

Should you or anyone you know be wrongfully denied for an insurance claim, or if you have any questions regarding the processing of an insurance claim, as experienced Miami-Dade property loss lawyers we are here to help and welcome your calls to the number listed below. Miami-Dade homeowner’s insurance attorneys are here to assist you 24/7. We can be reached at 305-764-9907 or 1.888.413.8353