In the aftermath of Hurricane Debby, Florida’s Chief Financial Officer, Jimmy Patronis, has issued a flurry of warnings and emergency orders. According to Patronis, his actions are meant to protect Floridians from “unscrupulous characters” who offer contracts that can leave homeowners on the hook for more than what their insurance will cover. While on the surface, this may seem like a noble effort to safeguard consumers, a deeper look reveals a troubling narrative—one that unfairly targets Public Adjusters (PAs) and other licensed professionals whose sole purpose is to help policyholders navigate an increasingly adversarial insurance landscape.
A Misguided Attack on Licensed Professionals
Patronis’ message casts an incredibly wide net, warning against unlicensed public adjusters, roofers, and contractors. But why are state-licensed Public Adjusters, who are legally allowed to represent homeowners in their insurance claims, being lumped together with fly-by-night operators and scam artists? This broad-brush approach not only vilifies legitimate professionals but also restricts their ability to perform the very work they are licensed by the state to do.
Imagine if one bad barber gave a poor haircut, and the state responded by changing the licensing rules for all barbers, or even worse, restricted their rights to do business. It’s an absurd notion, yet that’s exactly what’s happening to Public Adjusters under Patronis’ watch. The real issue isn’t that PAs are unethical or unnecessary—far from it. The real problem lies in the insurance companies’ adversarial claims process, which has made it nearly impossible for homeowners to get a fair settlement without professional help.
The Role of Public Adjusters: More Necessary Than Ever
Most homeowners don’t want to pay a portion of their insurance claim to a Public Adjuster. They’d prefer a straightforward, fair claims process. But the reality in Florida today is that such a process doesn’t exist. Insurance companies, rather than acting in good faith, often close claims without payment or offer settlements far below what is necessary to repair the damage.
In fact, data shows that among the 40 largest insurance companies in Florida last year, half did not pay on at least 30% of claims. State Farm, one of the biggest players in the market, closed more than half of its claims in 2021 and 2022 without making a payment. (source) These numbers highlight a broken system, one that necessitates the expertise of Public Adjusters to ensure homeowners receive what they are rightfully owed.
Public Adjusters perform critical tasks that most homeowners simply aren’t equipped to handle. They investigate damages, prepare estimates, and supervise the entire claims process. Their knowledge and expertise often result in significantly higher settlements for homeowners, even after their fees, which are capped by state law at just 10% of the recovered amount.
Why is Patronis Really Targeting Public Adjusters?
Given the vital role that Public Adjusters play, why is Patronis so focused on restricting their contract rights? The answer may lie in the influence of the insurance industry, which stands to benefit from a reduced supply of licensed professionals who can challenge their lowball offers. By vilifying PAs and grouping them with unlicensed contractors and scam artists, Patronis is effectively working to weaken the very individuals who hold insurance companies accountable.
It’s important to question who really benefits from these new restrictions. Is it the homeowners, who are already struggling to navigate a complex and often hostile claims process? Or is it the insurance companies, who would prefer to deal with policyholders on their own terms, without the scrutiny of a licensed professional?
Our Stand: Supporting Ethical, Licensed Public Adjusters
At our firm, we proudly support the work of ethical, licensed Public Adjusters. These professionals play a crucial role in ensuring that homeowners receive the full benefits of their insurance policies, especially in a state where the insurance landscape has become increasingly challenging.
Rather than targeting PAs with restrictive measures, efforts should be directed toward fixing the root of the problem—an insurance system that too often fails the very people it is supposed to protect. It’s time to stop vilifying those who help and start holding accountable those who don’t.
Source:
https://web.archive.org/web/20240809212936/https://www.myfloridacfo.com/news/newsletter
