This week, news broke that Florida regulators recently fined three insurance companies – American Coastal, TypTap, and Sutton National – for mishandling claims.
- American Coastal: $400,000 fine for using unlicensed adjusters, failing to acknowledge Hurricane Ian claims, and failing to pay or deny claims within 90 days.
- TypTap: $150,000 fine for ignoring claim communications and failing to disclose damage estimates.
- Sutton National: $50,000 fine for unlicensed adjusters and inadequate disclosures.
On paper, these fines seem like accountability. In reality, they are a drop in the bucket. For companies collecting billions in premiums, $600,000 combined is nothing more than a cost of doing business. But for Florida policyholders, they raise an uncomfortable question: Are these fines enough to change an industry that has been given free rein by the Legislature?
A Legislature That Tipped the Scales
In recent years, the Florida Legislature has enacted sweeping changes to property insurance law. These “reforms” were billed as stabilizing the market. In reality, they stripped policyholders of meaningful tools to hold insurers accountable: Attorney’s fee rights have been gutted, meaning policyholders can no longer recover legal fees when they have to sue their insurer, making justice unaffordable.
- Bad faith remedies gutted — insurers know they can delay, deny, and underpay with little consequence.
- Shortened claim deadlines — many homeowners now lose rights before they even understand their policy.
- Appraisal and arbitration tilted — insurers increasingly funnel disputes into private forums where policyholders lack leverage.
- Notice requirements tightened — shortened deadlines mean claims are often barred before homeowners even understand their rights.
In short, the Florida Legislature has given insurers free rein. The result is predictable: insurers delay, deny, and underpay, knowing policyholders have few viable paths to relief. The pendulum has swung so far in their favor that these fines, while welcome, are nothing more than a flashlight on a system operating in the dark.
Why the Fines Fall Short
The Office of Insurance Regulation deserves credit for stepping in. But fines alone don’t fix the root problem:
- They don’t reimburse the policyholders who suffered the delays, denials, and abuse.
- They don’t deter repeated misconduct. For companies collecting billions in premiums, fines of $50,000 or even $400,000 are a rounding error. Insurers simply write them off as a cost of business.
- They don’t restore the accountability that was stripped away by the Legislature’s “reforms.”
As Doug Quinn of the American Policyholder Association put it, Florida policyholders are receiving some of the worst treatment in the country. These fines, while symbolic, do little to change that reality.
The Reform Florida Really Needs
If lawmakers truly want balance in the marketplace, they must act.
- Rebuild bad faith protections so insurers cannot intentionally mistreat their customers without consequence.
- Mandate transparency in adjusting with severe penalties for unlicensed or unqualified adjusters.
Without legislative change, fines will remain a public-relations tool, not a mechanism for justice. It is good to see regulators shining a light on the unthinkable actions of insurers. But let’s not mistake light for heat. These fines are not justice; they are reminders of a system designed to shield insurers, not protect Floridians. They are a reminder of how far the Legislature has swung the pendulum in favor of insurers and how urgent it is to restore balance.
Policyholders are not asking for special treatment. They are asking for fairness, accountability, and the ability to enforce the contracts they pay for. That is the reform Florida really needs.
Policyholders deserve better. The Florida Legislature must correct course and enact laws that hold insurers accountable. Until then, fines are nothing more than headlines.