Massive hurricanes like Ian (2022) and Michael (2018) caused billions in property damage, leading to six insurer insolvencies in 2022 alone.
The "deep story" of insurance in Florida is a complex saga of a market teetering on collapse, driven by a perfect storm of natural disasters, legal exploitation, and corporate maneuvers. Once a hallmark of the American dream, homeownership in the Sunshine State has become a high-stakes financial gamble. insurance florida
Deep-dive investigations have revealed troubling financial practices that go beyond simple "bad luck" with storms: Massive hurricanes like Ian (2022) and Michael (2018)
Despite accounting for only 9% of U.S. property insurance claims, Florida is the source of 79% of the country's home insurance lawsuits . This disparity was largely driven by "Assignment of Benefits" (AOB) abuse, where contractors and law firms would encourage homeowners to file suits to inflate repair costs. these costs have skyrocketed
Large national insurers often create Florida-specific subsidiaries (colloquially called "pups"). These entities insulate the parent company's assets; if the Florida "pup" goes bankrupt, the parent company remains untouched.
Florida's insurance market is uniquely volatile, characterized by the highest premiums in the nation—averaging over , which is triple the national average.
Florida insurers rely heavily on "reinsurance" (insurance for insurance companies). As global catastrophe risks rise, these costs have skyrocketed, with some reinsurance layers doubling in price. Corporate Shell Games & Whistleblowers