State officials issue emergency rule to protect homeowners from insurance fraud after storm: ‘Dishonest and deceptive acts’

State officials in Florida have stepped in to help storm-ravaged residents get the money they need from insurance companies.

Just before landfall Hurricane Miltonthat hit the state about two weeks after Hurricane Helene, the Florida Department of Financial Services issued an executive order to insurance adjusters with new requirements to avoid “dishonest and deceptive acts” and “post-storm fraud” by insurance companies. A copy of the decision was obtained by The Washington Post.

The emergency order requires adjusters to provide a written estimate of losses to the policyholder, breaking things down line by line, as well as any version and variation and “the extent to which the program has been modified by the adjuster.” Change the initial estimate is prohibited unless the adjuster provides a detailed explanation of why it was done and who made the decision, according to the Post’s report.

Adjusters must also use an electronic system that provides an itemized report of damage and labor costs supplies for repairs. Those figures should also be consistent with what a contractor or repair company in the area would charge, preventing adjusters from being able to lowball quotes or rates based on different states or years.

“This provides much-needed relief to policyholders from unscrupulous insurance company practices,” Mathew Mulholland, an insurance claims expert and founder of the Building Experts Institute, told The Washington Post. “For so long, carriers have been able to create legitimate estimates and manipulate them for their own gain.”

If storms continue to intensify because of climate changethe new rule protects homeowners and gives them a chance to rebuild fairly with the money they owe. Other States like Texas insurance companies have withdrawn from the market or charge exorbitant rates due to increased damage caused by more intense storms, forcing people to pay out of pocket. And while government programs exist to support those in need, they are often costly or costly progress is slow due to bureaucratic constraints.

People are taking matters into their own hands, like the developers of the Hunters Point neighborhood in Floridawhich some “hurricane-proof” changes such as steel walls for protection against flooding and solar panels to keep the lights on during power outages. These changes have lowered insurance costs for homeowners and have the added benefit of being implemented their homes greenerthus their contributions to climate change.

Join our free newsletter for good news And useful tipsand don’t miss it this nice list of simple ways to help yourself and help the planet at the same time.