Quote:
Originally Posted by Rainger99
I am not a legislator and I do not work for an insurance company but I assume that the insurance companies have lobbyists in Tallahassee and that they are in contact with the legislators.
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The insurance companies do have lobbyists. I handle the finances for several COA's and HOA's in Florida. All of the Associations are paying in excess of 1,000,000.00 on insurance, with the highest breaking 2,000,000.00.
If you breakdown the cost of paying claims vs legal expenses, you may be shocked. While there are many people and groups abusing the system, the insurance companies are not innocent. I was at on meeting between the BOD and the insurance company. As you would expect everything was the blame of roofing companies, laws etc.. I pointed out the capital this specific provider spent in the prior year for legal expenses. I then asked him to confirm that over 70% of those cases (denial cases) were lost by the insurance company.There is plenty of blame to go around. Another COA I represent pays over 900k for Wind insurance. They have 21 buildings. Instead of one policy for 21 buildings we are required to have 21 policies, each with a 200k deductible. On top of that, we are spending large amounts to assure our roofs. Should there be a storm, the carrier does pay based on the remaining life of the roofs. Their issue is that they put a new membrane down on all 21 buildings, for which there are 12 years remaining on the material and labor warranty. The insurance providers show the value of each roof to be 0, as they do not recognize anything other than a new roof to reset the life expectancy. So many people, especially the elderly who have been living in these units for decades, are not able to afford the 1,500. monthly fees being driven mostly by insurance.