Living in the Sunshine State has its advantages when it comes to weather, but there is a downside to nigh year-round beach time. Floridians need to contend with hurricane season, which leads to flooding, wind and other related damage. The purpose of insurance is to counteract those forces of nature, but it seems insurance companies in Florida have different ideas of what adequate compensation should be.

Since Hurricane Michael, homeowners have inundated these businesses with claims from basic repairs to restoration work. Unfortunately, there is a trend to deny those claims, leaving homeowners to pick up the cost while additionally paying increased insurance premiums. Florida state law has yet to act quickly on these fraudulent practices, but it may simply be the result of lacking the appropriate information.

Data in the right hands

One of the ways to bring light to this situation is by looking at claims reports from each insurance agency individually. According to The Gainesville Sun, a nonprofit organization asked one large insurance company to divulge its claims data so lawmakers and the public can get a better idea of how these processes work. The business has led strong and vocal opposition to the assignment of benefits, wherein the company itself has been the target of a number of lawsuits against rejected claims.

This insurance company is only one of many that seek to deny their customers adequate compensation for their loss. Undervaluing or rejecting claims has led to a spike in lawsuits that often result in judgments against those businesses. In effect, the costly practice of denying claims which in turn leads to legal action only serves to increase overall costs for insurance companies, contributing to even more rate increases.

Legal recourse

People should not have to fight to get what insurance companies owe to them. Those who have had a claim denied or underpaid by an insurance company may be able to take action. By filing suit, customers help to bring light to this situation, giving Florida legislators the opportunity to delve into these practices more closely.