Florida's Property Insurance Crisis
Florida homeowners face one of the most difficult property insurance markets in the country. Major national carriers have exited the state, premiums have skyrocketed, and claims disputes have multiplied. After major hurricanes, insurers routinely dispute whether damage was caused by wind (covered under homeowners policies) or flooding (requiring a separate NFIP or private flood policy). This "wind vs. water" battle is the single most contentious issue in Florida post-hurricane claims.
Wind vs. Flood: The Critical Coverage Distinction
Standard Florida homeowners policies cover damage from wind, rain, and windborne debris. They do not cover flooding—water that rises from the ground, storm surge, or overflow from a body of water. After hurricanes, when properties are damaged by both wind and flood simultaneously, adjusters may attribute damage to flooding (not covered) rather than wind (covered).
Challenging this allocation requires documentation: meteorological reports, storm surge maps, engineering analysis of the direction and type of damage, and neighbor testimony about what damaged their property. A public adjuster or forensic engineer can prepare expert-supported documentation of wind damage causation.
Florida's Citizens Property Insurance
Citizens Property Insurance Corporation is Florida's state-run insurer of last resort—the largest insurer in Florida by policy count. Claims against Citizens follow the same process as private insurers, but Citizens has specific procedural rules. Notably, Citizens policyholders have rights under Florida statute to invoke the neutral evaluation program and the appraisal process for disputed claims. Citizens also has its own complaint process through the Florida Department of Financial Services.
The Appraisal Clause: Your Fastest Path to Resolution
Most Florida homeowners policies include an appraisal clause for disputes about the amount of loss. When invoked, each side selects an appraiser and the two appraisers agree on an umpire. The umpire's award on any issue is binding. Appraisal is faster than litigation—typically resolving in 60–120 days—and can produce results significantly higher than the insurer's initial offer. An experienced Florida public adjuster or attorney can help you invoke and navigate the appraisal process.
Florida Bad Faith Insurance Law
Florida Statute § 624.155 provides a powerful bad faith remedy for insurers who fail to settle claims in good faith. Before filing a bad faith lawsuit, you must serve the insurer with a Civil Remedy Notice (CRN) giving them 60 days to cure the problem. A successful bad faith claim can recover attorney's fees and extracontractual damages beyond the policy benefits. The 2023 Florida insurance reform legislation modified some bad faith procedures, so current legal advice is essential.
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Yates Anderson represents clients in Alabama, Florida, and beyond. Our attorneys handle complex disputes with the rigor of a national firm and the agility of a boutique. Request a case evaluation and an attorney will respond within one business day.
Frequently asked questions
My Florida insurer is saying my damage is from "storm surge" and not covered. Is that true?
Flood and storm surge are typically excluded from standard homeowners policies. However, if your home suffered wind damage first—broken windows, roof damage—and water entered through those openings, that water intrusion may be covered as a wind-caused loss. Separating covered wind damage from excluded flood damage requires a professional damage analysis. An engineering report establishing the sequence of events can be decisive.
Can I hire a contractor before my Florida insurer inspects the damage?
You should document all damage with photos and video before any repairs. Emergency repairs to prevent further damage (tarping, boarding windows) are generally covered and should not wait. However, major permanent repairs before the insurer inspects may give the insurer grounds to deny the claim because they were unable to assess the damage. Notify your insurer as soon as possible and document everything before repairs.
What is an Assignment of Benefits (AOB) in Florida and should I sign one?
AOB is an agreement transferring your insurance claim rights to a contractor or third party. Florida significantly restricted AOB in 2019 after widespread fraud. Under current law (2019 reform), AOB is still permitted but carriers can cancel coverage if you execute a post-loss AOB without insurer consent for non-emergency repairs. Read any assignment agreement carefully before signing; an attorney should review it for major claims.