Florida Fines Property Insurers $2M+ for Claims Handling Violations
Florida Insurance Commissioner Michael Yaworsky has imposed over $2 million in fines in 2025 on eight property insurance companies for deficiencies identified in their claims-handling practices during market conduct examinations. The top fines, amounting to $400,000 each, were levied against American Coastal Insurance, American Mobile Insurance, and Clear Blue Insurance for issues including delayed claims payments or denials, failure to properly adjust claims, lack of disclosure about damage estimates, and omission of adjuster license numbers as required by state regulations. These actions emphasize regulatory enforcement amid heightened insurer scrutiny ahead of the 2025 Atlantic hurricane season.
In addition to these fines, the Florida Office of Insurance Regulation (OIR) has actively pursued accountability for improper use of unlicensed or non-appointed adjusters, a practice that has repeatedly been flagged in the state. Earlier in 2025, Centauri Specialty Insurance was fined $100,000 for employing improperly appointed adjusters, while in 2024, Heritage Property and Casualty Insurance faced a $1 million penalty following issues with adjusters’ licensing during large-scale hurricane claim responses in previous years.
The market conduct examinations revealed significant variability among insurers in compliance with required disclosure statements related to damage assessments. For instance, Monarch National Insurance failed to include the required statement in 35% of claims reviewed, and TypTap Insurance omitted this in nearly 47% of the cases. American Mobile Insurance showed the highest rate of non-compliance, with 61% of claims featuring statements that did not meet statutory standards.
In addition to fines, some insurers, such as Tower Hill Prime Insurance, were required to pay restitution to policyholders after findings indicated claims adjustments were inconsistent with policy terms. Despite these findings, most insurers' claims-handling manuals complied with regulatory expectations.
Commissioner Yaworsky highlighted that penalties would not translate into premium increases for policyholders. The OIR’s Market Conduct Unit affirmed its preparedness to oversee claims practices proactively throughout the ongoing hurricane season. Two additional market conduct examination reports remain pending, indicating continued oversight of Florida insurers.
This regulatory activity underlines the state's commitment to enforce compliance in the property insurance sector, particularly critical given the exposure from frequent hurricane activity. Stakeholders should monitor ongoing enforcement trends and examination outcomes as indicators of risk management and regulatory focus within Florida’s insurance market.