Commissioner Yaworsky Requires Additional Coverage Data From Insurers for Damages Sustained During 2024 Hurricane Season

TALLLAHASSEE — Florida Insurance Commissioner Mike Yaworsky today is requiring additional data from insurers to be submitted to the Office of Insurance Regulation and is directing insurers to make sure they are following the law. OIR is issuing an informational memorandum to remind insurers of the need to properly evaluate property damage claims caused by the peril of water and the peril of wind sustained during the 2024 Hurricane Season. The Office recently learned of potentially concerning behavior relating to anti-concurrent causation policy language and the explicit avoidance of applying coverage for policyholders. Commissioner Yaworsky expects insurers, before denying a total loss claim, to be mindful and make sure the company is following the law. OIR’s informational memorandum also requires residential property insurers to report certain flood-related information to the office.       

Insurance Commissioner Mike Yaworsky said, “The Office of Insurance Regulation is examining data from companies to ensure that there is no abuse with the exemption process when determining total loss claims, especially for policyholders impacted by repeated hurricane damage during the 2024 Atlantic hurricane season. If our office finds explicit abuse and failure to comply with Florida law, OIR will take additional regulatory action.” 

During the 2024 Atlantic Hurricane Season, three hurricanes impacted Florida causing significant and, in certain areas, repeated damage by both wind and storm surge. The Florida Department of Financial Services’ Division of Consumer Services receives intake of consumer complaints regarding insurance matters. DFS has received a significant number of flood-related consumer complaints relating to timely payment of claims, inaccurate claims payments and post-claims underwriting.

OIR’s informational memorandum is requiring the reporting of information about National Flood Insurance Program’s Write Your Own policies and reminds insurers of the need to properly evaluate claim determinations when damage is caused by the peril of water and the peril of wind, commonly referred to as concurrent causation. While the office recognizes case law surrounding concurrent causation and anti-concurrent causation policy language, it is not a mechanism to handle claims poorly. Claims that trigger concurrent causation must be well documented and determined in accordance with Florida law. As in all cases, violations of the law, improperly handled claims involving concurrent causation will result in administrative action and restitution to the consumer.

OIR’s Market Regulation Bureau will review information from all three storms that made landfall during the 2024 Atlantic Hurricane Season, as well as the accuracy of insurers’ claims determinations—including information stemmed from the concurrent causation doctrine and anti-concurrent causation policy language.

To view the informational memorandum, click here.

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