State-backed Residents Property Insurance coverage hit by surge in lawsuits
Of the three,881 lawsuits it was served, Residents famous that 3,832 lawsuits concerned residential properties. And of these 3,832 lawsuits, 2,880 have been from the Miami-Dade, Broward, and Palm Seashore counties.
As reported by CBS Information Miami, Residents additionally indicated that it has 18,455 pending lawsuits as of April 30, 2022.
“Residents continues to expertise an growing pattern in new, incoming lawsuits primarily attributable to the growing variety of insurance policies in pressure,” the insurer’s report mentioned.
Residents beforehand disclosed that it added over 25,000 insurance policies in March. Policyholders have been transferring to the insurer of final resort over the previous two years as their authentic carriers both raised their charges to unfeasible ranges, refused to resume protection, withdrew from the Florida market, or filed for insolvency.
“That is additionally impacting the pending quantity as we proceed to work by way of the backlog in pending (instances) created by the consequences of the prior COVID response by the state court docket system with the short-term suspension of court docket hearings/trials,” Residents’ report continued.
The insurer’s lawsuit report additionally comes after legislators final month held a particular session on property insurance coverage, culminating within the signing of two legal guidelines meant to handle points associated to apartment construction security and insurance coverage payouts for roofing restore work. The session additionally addressed the problem of runaway litigation prices in Florida’s problematic property insurance coverage market.