Large Florida insurers fail to pay nearly half of homeowners claims: report

Three large homeowners insurance providers failed to pay nearly half of their claims from policyholders in 2023, a Weiss Ratings report claims.Weiss Ratings, which covers 53,000 institutions and investments, looked at some of the largest policyholders in Florida and determined three providers closed over 40% of claims with no payments in 2023.Related: Florida insurance companies approved for rate decreaseOf those three providers, Castle Key Indemnity Company denied 47.1% of the claims it closed last year, State Farm Florida Insurance Company denied 46.4%, and Castle Key Insurance Company denied 46%.“In the wake of increasing property damage from storms and record insurance company bankruptcies, this high rate of claims denials is severely compounding the hardships for Florida homeowners,” Dr. Martin D. Weiss, founder of Weiss Ratings, said. “But what’s most surprising of all is that some of the companies in Florida with the highest denial rates do have the financial strength to afford to pay a much larger portion of their closed claims.”Additionally, Citizens Property Insurance Corporation — a state-sponsored entity holding the single largest share of homeowners policies in Florida — failed to submit data requested by insurance commissioners regarding claims closed, Weiss Ratings reports.The Weiss Ratings also said the 2022 MCAS national survey of claims payment problems shows that Florida insurers denied the largest percentage of claims and also had the largest percentage of unprocessed claims in the nation.“The public can’t even begin to cope with the property insurance crisis until both the industry and the government provide full transparency,” Dr. Weiss said. “Strong truth in insurance legislation is urgently needed.”Florida policyholders can check their insurer’s Weiss Safety Rating at the company’s website.Related: Paying high home insurance prices in Florida? Here's how experts say you can save some money