Why are Florida insurance companies going belly up

“Critics say what’s driving this crisis is a pair of things: lawsuits and fraud. Last year more than 100,000 lawsuits were filed for property claims. That’s 130-times more than any other state in the country.“

100,000 lawsuits.

What’s in the water down there, maybe someone who lives there can help me out.

What’s the deal?


Too many lawyers.


It’s the new American Dream. The “L” word. Either hit the Lottery, or win a big Lawsuit.


Why Florida and let’s say not Jersey?

100,000 lawsuits in a year.

That’s an insane amount.


It’s not an excess of lawyers, it’s an excess of litigants.

There are a lot more lawyers in New York, DC and California.

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Old people. Old, upper middle class retirees who couldn’t quite afford the Palm Springs retirement they dreamed of, but had enough for Boca.


Going back to the op, it says they’re for property claims.

Hasn’t there been a rash of natural disasters concentrated in Florida? Hurricanes, floods, fires, sinkholes, etc.

Hard to say why so many end up as lawsuits though. Maybe with so many claims, insurance companies are trying to skimp on payouts, and that generates lawsuits from dissatisfied claimants.

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I have taken two automobile claims to lawsuit. In both cases, the at fault parties insurance was Allstate and they behaved, well, like Allstate. In other words total ■■■■■■■■■ I prevailed both times, in one case winning costs as well as my underlying claims, as the Judge ruled the insurance companies argument to be frivolous.

Sometimes, you just have to take their ass to court.

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I talked to my insurance company yesterday. They are not pulling out of the State of Florida.

They have been nothing but wonderful in every way about settling my claim for total loss.

However, what I hear from other folks are companies that try to nickel and dime. Delay and dispute payments on replacement values, etc.

BTW, I strongly urge everyone to take a look at their policy. If something happened to your home with the way the market is, you might well be underinsured.

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And how many posts have we seen from Cons on here that this person should sue, that person should sue…etc?

Really? You had to go lib-con there?


(For the record, I’ve seen none. So “we” isn’t the right wording in you question. Maybe you can answer your own question for yourself. Or maybe you can just wind your neck back in and stick to the topic instead.)

It is on topic…you’re saying/complaining that people are looking for the quick buck with lawsuits, and many on here call for just that.

Then you’re demonstrating my point.


Count them. I mean, if you’re sure about your claim. We’ll wait.

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Got a frivolous lawsuit to file? Better call Saul. :wink:

Just a quick search…

Can you say Allstate? You have to fight for every nickel and dime you’re insured for. Our friends kind of got screwed over by them.

In a separate case in the late 90s, my mother had to take them to court. Thankfully she won. I stay away from them.

The state is overrun with personal injury lawyers as a drive down any highway looking at billboards will show, and I can’t help but wonder if it’s related.

Another florida insurance company looks like it is going under