Florida’s top insurance official is putting insurance companies on notice after a wave of complaints from homeowners about unpaid hurricane damage claims. As frustration grows, Insurance Commissioner Michael Yaworsky is demanding more transparency and warning insurers that mishandling storm claims won’t be tolerated.
In a memo released last week, Yaworsky made it clear: if insurance companies deny claims unfairly — especially when both wind and flood damage are involved — they’ll face serious consequences. That could mean penalties and even compensation for homeowners who’ve been shortchanged. The state’s Department of Financial Services has reportedly received a flood of complaints about slow or insufficient insurance payouts, though the exact number of complaints remains undisclosed.
The spotlight seems to be on “write your own” companies, which handle National Flood Insurance Program (NFIP) policies. One of the biggest players in this space, Clearwater-based Wright Flood, said they’re baffled by the surge of concerns. Wright Flood’s spokesperson, Robert Langrell, insisted they follow all federal rules and pay every dollar owed under their policies. He also noted that their pace of settling claims for 2024 hurricanes is actually faster than usual.
However, the numbers tell a more complicated story. After Hurricane Helene slammed Florida last September, bringing devastating storm surges and record-breaking rain, more than 57,400 flood insurance claims were filed. But as of early February, only about half of all storm-related claims (including wind and private flood policies) had been closed with payments. Private flood insurers, not tied to NFIP, seemed to be even slower, with only 22% of claims from Hurricane Milton and 33% from Helene resulting in payouts.
A big part of the problem is the tricky issue of wind-versus-flood damage. Many homeowners don’t realize that their property insurance often excludes flood damage or storm surge. And some policies contain anti-concurrent causation clauses, which allow insurers to deny coverage if both covered and excluded types of damage occur — even when both play a role in the loss.
To get a clearer picture, Yaworsky has ordered insurers to hand over detailed data by March 6. They must confirm if they handle NFIP policies, name any claims-handling partners, and share claims manuals and reports on any weaknesses they’ve identified in the process.
As this drama unfolds, Florida lawmakers are also stepping up. In response to mounting frustration over rising insurance premiums and unpaid claims, they’re introducing bills that could reshape the state’s property insurance industry. One bill would force insurers to disclose executive pay and bring back attorney fee rules that insurers blame for driving up costs and bankrupting companies. Another bill would stop insurers from canceling wind policies after flood damage until homes are fully repaired or the policy renewal date arrives.
With three hurricanes hitting Florida between 2023 and 2024, the pressure on insurers has been intense. Many claims have gone unpaid, sometimes because damage didn’t meet the homeowner’s high deductible. But as the state’s top officials crack down and new legislation looms, change could finally be on the horizon for Florida’s frustrated policyholders.
