Citizens is Fed Up With Contractors Who Submit Inflated Claims

The Florida Office of Insurance Regulation (OIR) has approved two new controversial requests by Citizens Property Insurance Corporation, the state’s so-called insurer of last resort, in its bid to get skyrocketing claims and litigation costs under control. One. The nonprofit insurer will now be able to limit coverage on non-weather water claims to $10,000 unless the policyholder agrees to use Citizens’ approved contractors in its new managed repair program. The company can also waive deductibles on such claims as a further incentive for its policyholders to use the managed repair program. Two. OIR also approved Citizens’ requested policy changes that will now require contractors to submit damage reports and repair estimates, participate in appraisals by Citizens’ adjusters, and answer questions under oath. “We’re not going to solve the problems until we get legislative reform on the Assignment of Benefits issue to curb some of this ridiculous litigation that is taking place” – Citizens President and CEO Barry Gilway. Turns out, the insurance industry has warned for the past five years about contractors who submit inflated claims on all sorts of work and then file lawsuits if insurers deny or underpay the claims.