The Florida Office of Insurance Regulation has announced new measures aimed at increasing transparency and accountability in the handling of hurricane claim denials. This move comes in response to allegations from Weiss Financial Ratings that insurers have been denying valid claims. The announcement was made via a public statement.
According to the Florida Office of Insurance Regulation, Commissioner Mike Yaworsky has ordered insurers to expand their reporting on closed claims without payment, making this data public for storms such as Hurricanes Helene and Milton. For Hurricane Helene, 33% of closed claims without payment were due to damages falling below deductibles, while 20% were due to uncovered flood damage. In the case of Hurricane Milton, 41% of claims were closed because damages were under deductible limits. Yaworsky emphasized that Floridians “deserve full transparency and accountability” and warned that any suspicious denial activity would lead to enforcement actions.
As reported by the Insurance Journal, most homeowners’ insurance policies do not cover flood damage, which must be obtained through the National Flood Insurance Program (NFIP). Many homeowners are required to submit denial letters from their insurers before NFIP coverage can apply, which artificially inflates the number of “claims closed without payment.” The Office reminded insurers that Florida law requires proper evaluation of concurrent causation—where damage stems from both wind and water—and said it will take administrative action and mandate restitution in cases of mishandling.
Weiss Financial Ratings alleged that 14 insurers refused to pay out more than half of homeowners’ claims. However, according to news reports, Weiss was unable to provide proof for its allegations. The Office countered that its expanded claims data does not support Weiss’s narrative, instead showing denials were overwhelmingly tied to deductibles and flood exclusions. Broader concerns about Weiss’s credibility have also surfaced: the Banking Policy Institute submitted comments to the Federal Communications Commission (FCC) expressing “serious concerns” over Weiss’s methodology, leading the FCC to pause Weiss’s bank ratings rollout after hearing complaints.
The Florida Office of Insurance Regulation is responsible for regulating insurers within the state, monitoring claims practices, and ensuring consumers are treated fairly under Florida law. Led by Insurance Commissioner Mike Yaworsky, it has oversight authority to investigate misconduct, impose administrative penalties, and require restitution where necessary. Its mission is to protect Floridians through transparency and accountability in insurance markets, particularly following hurricanes.
