On Tuesday, the Florida Attorney General's Office launched an investigation into certain insurance companies suspected of denying homeowners compensation after hiring independent professionals to file damage claims, even in the aftermath of hurricanes.
State Attorney General James Uthmeier announced that his office is scrutinizing specific clauses in insurance policies that prevent policyholders from seeking assistance from public adjusters, who are licensed to advocate for homeowners during the claims process.
The investigation has already led to a formal subpoena being issued to Velocity Risk Underwriters, LLC, a company involved in insurance underwriting and management across Florida.
The official statement released on October 20th indicates that authorities aim to determine whether multiple companies colluded to enforce these restrictions in order to lower payouts to their customers.
This move could be particularly significant for thousands of families in the state, including those in Miami-Dade and Broward counties, who rely on their insurance policies to repair homes damaged by hurricanes, floods, fires, and other covered disasters.
Potential Denial of Entire Claims
The investigation focuses on so-called anti-public adjuster clauses, contractual provisions that limit or outright prohibit hiring public adjusters. According to the Attorney General's Office, some policies allow insurers to reject entire claims when homeowners enlist the help of these professionals.
This situation predominantly affects certain policies within the specialized insurance market, known as surplus lines, which cover properties that are challenging to insure through traditional companies. These often include homes near the coast or with older roofs, which face higher risks and difficulties in securing coverage.
The Attorney General's Office asserts that Velocity manages thousands of such policies in Florida, accounting for millions of dollars in premiums.
Advantages of Professional Assistance
Another key point in the announcement is the potential difference in compensation between direct insurer settlements and those negotiated through public adjusters. According to Uthmeier, homeowners using these services might receive up to 30% more in certain claims.
However, the official statement does not provide an independent study to verify this percentage, nor does it imply that all policyholders will automatically receive higher compensation. Public adjusters charge fees for their services, usually calculated as a percentage of the indemnity, with the Florida Department of Financial Services capping these fees at 10% for claims related to declared emergencies in the first year and 20% in other cases, though legal exceptions exist.
As a precaution, authorities recommend reviewing contract terms and ensuring the professional holds a valid state license.
Previous Legal Actions Against Restrictions
In October 2025, the Florida Association of Public Insurance Adjusters (FAPIA) and the National Association of Public Insurance Adjusters (NAPIA) filed a lawsuit against Velocity Risk Underwriters in a Miami-Dade County court.
According to reports from Insurance Journal at the time, the organizations claimed that certain clauses employed by the company violated the rights of policyholders and the authorized professionals representing them.
The lawsuit alleged that Velocity could refuse to investigate property damages until clients severed ties with a public adjuster, potentially pressuring individuals needing urgent home repairs.
Meanwhile, representatives from the insurance sector argue that some public adjusters may inflate repair costs, thereby increasing the amounts claimed.
The current state investigation aims to determine whether there were agreements among companies to restrict the hiring of public adjusters, consequently reducing payments to homeowners.
The Attorney General's subpoena demands Velocity provide records of its interactions with trade associations, communications with other insurers, and any agreements related to such prohibitions.
This announcement comes shortly after Hurricane Isaías swept through northwest Florida, causing damage to numerous homes and prompting homeowners to file claims with their insurers.
On October 11, Florida opened an insurance claims assistance center in Destin to guide those affected by the cyclone.
Understanding Insurance Claims and Public Adjusters in Florida
What is the role of a public adjuster?
A public adjuster is a licensed professional who represents policyholders in the insurance claims process, helping them negotiate with insurers to obtain fair compensation for damages.
Why is Florida investigating insurance companies?
Florida is investigating insurance companies for potentially including clauses in their policies that restrict or prohibit hiring public adjusters, which may lead to denied claims and reduced payouts to homeowners.
How can hiring a public adjuster benefit homeowners?
Hiring a public adjuster can potentially increase the compensation homeowners receive from their insurance claims by up to 30%, as these professionals are skilled in negotiating settlements.