What is contributing to the spike in water damage claims in South Florida?
Citizens Property Insurance Corp. recently announced that it will post a $27.1 million loss for 2016. The company attributed the loss to rising legal costs and soaring claims stemming from nonweather-related water claims such as burst pipes and sudden dishwasher leaks.
As we previously reported in this blog, these claims have been a longstanding controversy that has drawn the attention of Florida lawmakers, mostly due to steadily rising insurance rates. Citizens is a non-profit,
The company contends that the rate hikes were justified due to the surge in
Citizens previously said that this practice prompted the company to propose additional rate hikes. However, it is clear the rate hikes will not stem the losses the company incurred in 2016. In particular, Citizens saw a surge in water damage claims related to linking pipes in Miami-Dade,
The problem is compounded by the fact that many nonweather water damage claims lead to litigation, which ultimately drives up the cost of an average claim by $20,000 or more. While it is unclear whether the Florida legislature will take action to curb assignments of benefits, homeowners will invariably be forced to foot the bill in the form of higher rates. Citizens
In the meantime, if you are a homeowner who is involved in a dispute with an insurer over