Florida Insurer to Pay $30M Over Backdated Claims from Hurricane Irma

Universal Property & Casualty Insurance Co., one of Florida's largest homeowners insurance companies, has agreed to pay $30 million to the state to resolve allegations of backdating Hurricane Irma claims. The Florida attorney general's office claimed that the company fraudulently submitted ineligible claims for reimbursement from the Hurricane Catastrophe Fund. Universal was accused of violating the Florida False Claims Act by falsely dating claims associated with the 2017 hurricane.

Under a settlement agreement, Universal does not admit wrongdoing but will pay over $4 million in fines and implement changes to its policies and procedures. Florida Attorney General James Uthmeier emphasized the need for insurance companies to operate within legal frameworks to ensure a stable insurance market for homeowners in Florida. The allegations emerged from a whistleblower lawsuit filed in 2020, which initiated the investigation by the attorney general's office.

Universal asserts that the claims in question represent only 1% of its total Hurricane Irma claims and states that they fully cooperated with the investigation, contesting the factual accuracy of the former employee's claims. This fine marks the largest against an insurance company in Florida since 2013, showcasing heightened scrutiny on insurance practices following Hurricane Irma.