Property insurance: A disappearing safety net

ANOTHER VIEWPOINT

With hurricane season quickly approaching, many will begin physical preparations around their properties. The days leading up to June 1 are a time to assess your home with an eye toward securing anything that could become a hazard in high winds.

But as a licensed public adjuster and Florida homeowner myself, I encourage all property owners to also take time to understand our complex insurance ecosystem before disaster strikes. I’ve seen firsthand the drawn-out battles hurricane victims go through with insurance companies for underwhelming, and in many cases improper, payments. Though knowledge alone can’t prevent a claim delay or denial, it’s important for policyholders to know what they’re up against.

There are three major trends homeowners should watch for this hurricane season. The first is insurance companies outsourcing their claims to independent adjusters. These adjusters come and go, and yet, their reports are used as the basis for major decisions on your claim. These adjusters often arrive from out of state with little familiarity of Florida’s building codes or construction standards, and they’re under pressure to move quickly, not necessarily thoroughly. Their goal is often to complete a high volume of claims in a short window, which rarely aligns with the goal of the homeowner.

The second trend that adds to homeowner frustration after a storm is claims getting reassigned repeatedly to new examiners. In the field working for policyholders, I see this all the time. In each instance where a case is reassigned, new examiners need to review the file, interpret the situation and determine the appropriate next steps. This leads to a lack of consistency, communication and accountability, leaving homeowners chasing after insurance companies for clear answers. It also leads to interminable delays. This becomes especially problematic in the wake of hurricanes like Helene and Milton because insurance companies focus on efficiency, not necessarily accuracy. Years ago, I experienced this firsthand when I worked as a catastrophe adjuster for insurance companies for over a decade. The goal was simple: Inspect ten homes a day for 30 straight days and then head home. That volume-focused approach leaves little room for the care and diligence homeowners deserve.

Finally, the third and perhaps most concerning trend I’m witnessing is not in how policy claims are handled, but the policies themselves. Since premiums have skyrocketed in the last few years, policyholders have elected to reduce their coverages and increase their deductibles to offset their premiums. Roofs, structures like screen enclosures and fences, and even water losses are being commonly excluded from policies. What most policyholders don’t know is that these new policy provisions reduce their coverage and/or bind them to managed repair programs with little to no policy premium benefit in return. You’re paying more for considerably less, and sadly, many don’t realize this until after the storm hits.

If you’re a policyholder, I implore you to look at your policy now before disaster strikes. Particularly pay attention to the post-loss obligations listed in your policy, which you must comply with in order to receive fair settlement of your claim. If that feels overwhelming, remember you can always reach out to a licensed public adjuster. The truth is, insurance isn’t the safety net it once was. In today’s insurance climate, it’s not enough to just have a policy. You need someone who understands it, who knows the system and who can advocate for you when the storm passes and the real fight begins.

Joshua Connor lives in Pompano Beach and is the founder of the insurance adjusters firm Coastal Claim Consultants. With over 20 years of experience, he has been named an expert witness in Florida federal and circuit courts and serves on the board of directors for the Florida Association of Public Insurance Adjusters.