The property insurance consumer in Florida is in a difficult regulatory and legal environment. The Florida Department of Insurance has the complicated task of providing consumer protection while balancing the needs of insurance carriers on one side, and public adjusters and plaintiffs attorneys on another. The department has the duty of encouraging private insurers to deploy their capital and offer consumers affordable coverage and to ensure that consumers have the reasonable ability to redress unfair insurer claims practices. The conflict between these duties has led to dysfunction in the marketplace. The result has left the consumer with shrinking coverages, increased premiums, reduced market choices and poor customer service.
The common methods for the consumer to redress a poor claim experience is to engage a professional that will be compensated on a contingent basis. The compensation is typically a percentage of the claimed loss or an additional amount paid by the insurer for professional fees. This arrangement almost always puts the consumer at odds with the carrier. The process typically inflates the settlement to cover the cost of repairs, and the professional fees on both the consumer and insurer sides. A new strategy is emerging that utilizes the services of a claims advocate. The advocate’s compensation is not tied to the outcome of the settlement, and insurers are welcoming the advocate as a nonadversarial catalyst to quickly settle claims.
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