Florida’s State-Run Insurance Company Flatly Denied 16,922 Homeowner Claims, the Most in the State
PALM BEACH GARDENS, Fla., Nov. 20, 2024 — Weiss Ratings, the nation’s only independent insurance company rating agency, revealed today that Florida’s state-run Citizens Property Insurance Co. denied 16,922 homeowner claims in 2023 with no payment whatsoever.
|
Insurance Company Name |
State of Domicile |
Homeowner Claims Closed in 2023 (number) |
Claims Closed with No Payment (number) |
Claims Closed with No |
|
Citizens Property Ins Corp. |
FL |
33,569 |
16,922 |
50.4% |
|
Universal P&C Ins. Co. |
FL |
40,238 |
14,774 |
36.7% |
|
Castle Key Insurance Co. |
IL |
26,274 |
12,089 |
46.0% |
|
Castle Key Indemnity Co. |
IL |
22,652 |
10,667 |
47.1% |
|
State Farm Florida Ins Co. |
FL |
19,022 |
8,829 |
46.4% |
Source: Weiss Ratings. Data: Company Annual Statements Schedule P, Part 3A, Homeowners/Farmowners, columns 11-12, row 11. Includes all homeowner (and farmowner) claims received and closed in 2023.
Citizens denied the most claims among all insurers in the state, significantly exceeding those of private-sector companies with the largest number of denials, such as Universal Property & Casualty Insurance (14,774), Castle Key Insurance (12,089), Castle Key Indemnity (10,667), and State Farm Florida Insurance (8,829).
|
Insurance Company Name |
State of Domicile |
Homeowner Claims Closed in 2023 (number) |
Claims Closed with No Payment (number) |
Claims Closed with No |
|
Citizens Property Ins Corp. |
FL |
33,569 |
16,922 |
50.4% |
|
Castle Key Indemnity Co. |
IL |
22,652 |
10,667 |
47.1% |
|
State Farm Florida Ins Co. |
FL |
19,022 |
8,829 |
46.4% |
|
Castle Key Insurance Co. |
IL |
26,274 |
12,089 |
46.0% |
|
Kin Interinsurance Network |
FL |
3,090 |
1,361 |
44.0% |
|
Amer Integrity Ins Co. of FL |
FL |
5,158 |
2,263 |
43.9% |
Citizens also ranked worst in the state in terms of the percentage of closed claims that were denied with no payment in 2023, denying 50.4%, or at an even higher rate than the unusually high denial rates by Castle Key Indemnity Co. (47.1%), State Farm Florida Insurance Co. (46.4%), Castle Key Insurance Co. (46%), Kin Interinsurance Network (44%) and American Integrity Ins. Co. of Florida (43.9%).
|
Citizens Property |
Homeowner Claims Closed (number) |
Claims Closed with No Payment (number) |
Claims Closed |
|
2023 |
33,569 |
16,922 |
50.4% |
|
2022 |
58,061 |
24,438 |
42.1% |
|
2021 |
15,084 |
7,293 |
48.3% |
|
2020 |
13,985 |
7,065 |
50.5% |
|
2019 |
9,699 |
4,663 |
48.1% |
Furthermore, Citizens’ policy denial rate for 2023 is very near its highest in recent history. Citizens’ denial rate of 50.4% of closed claims in 2023 was exceeded only slightly by its 50.5% denial rate in 2020. In other recent years, it was lower — 42.1% in 2022, 48.3% in 2021 and 48.1% in 2019.
Weiss Ratings founder Martin D. Weiss commented, “Above all else, homeowners suffering property damage want their claims to be paid. Unfortunately, however, Citizens, the company that’s supposed to be Florida’s fail-safe insurer or insurer of last resort, has the worst record among all providers in the state — the biggest number of claims denied, the highest percentage of claims denied, and a sordid history of high claims denial rates.”
On a state level, Weiss recommends that Florida’s legislature and Office of Insurance Regulation (OIR) undertake a thorough investigation to determine the primary factors contributing to Citizen’s high claims denial rates in order to clearly define urgent remedial action.
Meanwhile, on a national level, Weiss urges federal and local governments to seriously review programs that effectively transform them into insurers of last resort;
Weiss concluded, “This high level of claims denials is unforgivable, and the lesson to be learned by governments should be unforgettable.”