Big Florida Insurers Close Nearly Half of Homeowner Claims Without Payment

In the past year, three prominent Florida homeowners insurance companies—Castle Key Indemnity, State Farm Florida, and Castle Key Insurance—denied nearly half of their claims, revealing significant issues in the state’s insurance industry. According to Weiss Ratings, these companies closed 47.1%, 46.4%, and 46% of claims, respectively, without any payment to policyholders. This high rate of denial is exacerbating the difficulties faced by Florida homeowners amid increasing property damage from storms and a surge in insurance company bankruptcies.

Moreover, Citizens Property Insurance Corporation, Florida’s largest provider of homeowners policies, did not submit required claims data to state insurance commissioners, further obscuring the full scope of the problem. In addition to the major insurers, smaller providers like Kin Interinsurance Network, American Integrity Insurance Company of Florida, and PURE Specialty Exchange also reported high denial rates, with over 40% of claims closed without payment.

Dr. Martin D. Weiss, founder of Weiss Ratings, criticized both the insurance companies and regulatory authorities for withholding critical data that consumers need to make informed decisions. He emphasized the need for greater transparency and stronger truth-in-insurance legislation to address the crisis. The 2022 MCAS national survey by the National Association of Insurance Commissioners (NAIC) supports Weiss’ findings, showing that Florida insurers have the highest denial rates, most unprocessed claims, and significant delays in claim payments.