Florida insurers restricting public adjusters is at the center of a new legal and regulatory dispute, as at least six property insurance companies have introduced policy endorsements that limit or prohibit policyholders from hiring public adjusters for insurance claims.
Florida Insurers Restrict Public Adjusters With New Policy Endorsements
According to industry filings and regulatory reports, several Florida property insurers have adopted endorsements that either restrict or fully ban the use of public adjusters by policyholders. These endorsements appear in both surplus lines and admitted carrier policies. Some insurers are offering premium discounts if policyholders agree not to use public adjusters for any covered loss.
Public adjusters are licensed professionals who represent policyholders in insurance claims, helping to assess damages and negotiate settlements. Florida law recognizes the right of insureds to hire public adjusters and regulates their conduct and fees.
Legal Challenge Filed by Public Adjuster Associations
Florida’s two main public adjuster associations have filed a lawsuit in Miami-Dade County challenging these anti-public adjuster endorsements. The associations argue that the endorsements violate state statutes and insureds’ rights. The lawsuit seeks to stop insurers from enforcing these restrictions, claiming they are deceptive, unfair, and violate consumer protection and antitrust laws.
The legal action centers on endorsements that explicitly state policyholders cannot hire or use public adjusters for any covered loss. Insurers may refuse to process claims if a public adjuster is involved, according to the lawsuit. Some public adjusters have already been forced to terminate their representation of clients due to the new policy language.
Industry Trends and Regulatory Developments
According to regulatory filings, four admitted carriers have requested approval for similar endorsements, indicating a broader trend in the Florida insurance market. Surplus lines insurers, which face lighter regulation, have been able to introduce restrictive endorsements more easily than admitted carriers.
Public adjuster groups are also lobbying regulators and state-run insurers to rescind policies that exclude adjusters from settlement checks. The insurance industry has long sought to limit the influence of public adjusters, citing concerns about inflated claims and adversarial practices.
Impact on Policyholders and the Florida Insurance Market
Experts view these endorsements as a direct challenge to policyholder rights and the regulatory framework that licenses public adjusters. There is concern that if such endorsements become widespread, policyholders will lose access to professional representation, which could undermine fair claim settlements.
Some industry observers argue that these practices may amount to restraint of trade and could be considered anticompetitive under state law. The legal challenge is seen as a pivotal test of whether insurers can condition coverage on waiving statutory rights, potentially setting a precedent for other states.
Background on Florida’s Insurance Regulation
Florida law allows policyholders to hire public adjusters, and the state regulates their licensing, conduct, and fees. Surplus lines insurers, however, operate under a different regulatory framework and have more flexibility to introduce policy changes, including restrictive endorsements.
The dispute reflects ongoing tension in Florida’s property insurance market, which has seen rising premiums, insurer insolvencies, and increased regulatory scrutiny. Recent legislative changes have also altered how claims and attorney fees are handled, further impacting the role of public adjusters.
Potential National Implications
The outcome of the lawsuit could influence future policy language, regulatory enforcement, and the balance of power between insurers and policyholders in Florida. The issue is also part of a broader national debate over consumer protection and insurer practices, especially in catastrophe-prone states.
According to official sources, details of the lawsuit and regulatory responses may be updated as the investigation and legal proceedings continue.
Frequently Asked Questions About Florida Insurers Restricting Public Adjusters
What does it mean when Florida insurers restrict public adjusters?
It means some Florida property insurance companies are adding policy language that limits or bans policyholders from hiring public adjusters to help with insurance claims. This can affect how policyholders manage and negotiate their claims.
How do these endorsements impact policyholders in Florida?
If a policy has an endorsement restricting public adjusters, the policyholder may not be able to hire a professional to represent them during the claims process. This can make it harder for some people to get help with damage assessment and settlement negotiations.
Are all Florida insurance companies restricting public adjusters?
No, not all companies are using these endorsements. At least six insurers have introduced them, and a few others have requested approval, but many policies still allow public adjusters.
Can you still hire a public adjuster for a property claim in Florida?
You can hire a public adjuster unless your insurance policy specifically includes an endorsement that restricts or prohibits it. Always check your policy documents or contact your insurer to confirm your options.
Where are these restrictions on public adjusters being challenged?
The main legal challenge is happening in Miami-Dade County, Florida, where public adjuster associations have filed a lawsuit against the use of these endorsements by property insurers.
