by Mike Colpitts 
- The Florida insurance commission has fined eight homeowner insurance companies nearly $2.1 million for consumer abuses following Hurricane Ian and Idalia.
- Eight homeowner insurance companies have been fined and two others await penalties.
- The fines amount to nearly $2.1-million as a result of consumer complaints.
Eight homeowners insurance companies have been fined by the Florida insurance commissioner as a result of abuses following Hurricane Ian and Idalia. The penalties amount to nearly $2.1-million in fines as a result of failures handling claims state investigators determined following consumer complaints.
The penalties have been levied against eight of the state’s largest homeowner insurance companies. Investigations against two additional homeowners insurance carriers are still being conducted.
American Coastal Insurance Company and American Mobile Insurance Exchange were found to be two of the largest offenders, being fined $400,000 each for violations. Tower Hill Prime Insurance, one of the largest coastal carriers in the Fort Myers area was fined $250,000.
Fines issued by the Florida insurance board total nearly $2.1 million against insurance companies for improprieties related to their business practices.
Unlike past Florida investigations that produced large fines and higher insurance rates for consumers, the new fines will not impact insurance rates. With the hurricane season hitting its peak, Florida state Insurance Commissioner Mike Yaworsky said that additional consumer abuses will not be tolerated and that the state is ready to deploy investigators during storms to make sure claims handling practices are up to standard.
At least fifteen insurance companies are approved to write homeowner policies in the state of Florida, including wind and hurricane policies. “Capital is pouring in, and the market is stabilizing, but our office holds insurers to high standards,” said commissioner Yaworsky. “It is important that consumers have confidence that they are getting what they pay for. The Office of Insurance Regulation stands ready to fulfill oversight duties assigned by the Legislature and make sure Floridians are being treated fairly, especially after hurricanes.
“Insurer accountability and consumer protection will always take priority. We want companies to thrive, but companies must also be worthy of doing business in our state.
“With the most active part of hurricane season approaching, I am fully prepared to deploy OIR examiners to make sure claims management practices are efficient and handled appropriately. We will be paying particularly close attention to any company who has had concerning performance behavior in the past.”
In 2025, OIR’s Market Conduct Unit’s will finalize examinations of ten companies, eight of which have findings of misconduct for business practices during Hurricanes Ian or Idalia. Findings included using adjusters not properly appointed, not acknowledging receipt of claims communications in a timely manner, not including disclosure statements when providing estimates on damage claims, failing to provide Homeowners Claims Bill of Rights, and failing to pay interest when owed.
In one examination the Market Conduct Unit identified error rates of over 60% for Hurricane Ian and over 80% for Hurricane Idalia for the company not including disclosure statements. In several of the examinations, OIR found companies failed to pay or deny claims in 90 days.
Insurance reforms have focused on consumer protection and have made inroads to stabilize Florida’s insurance market. Reforms in the industry and state legislation to improve the marketplace has provided greater ability to enforce regulatory authority and take action to increase market compliance.
For fiscal year 2023-24, OIR’s Market Conduct Unit secured more than $8 million in monetary restitution and issued more than $2.8 million in fines—nearly seven times the total fines collected in two-thirds of 2023.
The companies and penalties listed are those already fined:
American Coastal Insurance Company- $400,000;
American Mobile Insurance Exchange- $400,000;
Centauri Specialty Insurance Company- $100,000;
Clear Blue Insurance Company- $400,000;
Monarch National Insurance Company- $325,000;
Sutton National Insurance Company- $50,000;
Tower Hill Prime Insurance Company- $250,000; and
TypTap Insurance Company- $150,000.