Insurer, Regulator Work To Cap Spiraling Claims Costs

Florida’s Office of Insurance Regulation (OIR) has approved two controversial requests by Citizens Property Insurance Corporation as the company tries to get a handle on rising claims and litigation costs. The OIR has approved a plan to let the non-profit insurer limit coverage on non-weather water claims to $10,000 unless the policyholder agrees to use Citizens-approved contractors in the company’s new managed repair program. Citizens can also waive deductibles on those claims to incentivize the use of the program.
Citizens is projected to lose $85 million this year because of a spike in non-weather-related water-damage claims — claims for leaking pipes, for instance — and other insurers are seeing similar losses in Florida.