Florida’s largest property insurer, Citizens Property Insurance, closed 50% of its claims without payment in 2023, according to a report by Weiss Ratings, an independent Florida-based ratings agency.

The report revealed that Citizens denied payment in approximately 17,000 cases last year, resulting in a non-payment rate of 50.4%. This rate surpasses private insurers such as Allstate (47.1%) and State Farm (46.4%).

READ: Citizens Property Insurance Rejected 77% of Florida Homeowners’ Claims from Hurricane Debby, New Data Reveals

“As a state-run company, they should set an example for the private sector to follow,” said Martin Weiss, founder of Weiss Ratings who utilized Citizens’ own annual statement. “Instead, they’re setting a negative precedent, allowing private insurers to justify their practices by comparison.”

Citizens Responds to Criticism

Citizens spokesperson Michael Peltier disputed the report’s portrayal, describing the non-payment rate as “misleading.” Peltier noted that Citizens faces unique challenges compared to private insurers.

“Citizens insures more policies in flood-prone regions and handles wind coverage on the coasts, which many private companies avoid,” Peltier explained in an email to Bay News 9 Tampa. He also clarified that many claims classified as “closed without payment” do not reflect outright denials.

READ: Reminder: Citizens Insurance Will Require All Homeowners to Purchase Flood Insurance – Even Houses Not in Flood Zones

“Some claims don’t meet deductible thresholds, others may be duplicates or invalid,” Peltier said, emphasizing that Citizens, like most insurers, does not cover flood damage.

Legislative Leaders Vow Action

The report arrives as Florida lawmakers prepare to address the state’s troubled property insurance market. Senate President Ben Albritton highlighted the issue in a recent address, stressing the importance of accountability.

“Floridians have been paying insurance premiums faithfully for years, and they deserve companies that uphold their end of the bargain,” Albritton said. “Let this serve as a message to both impacted residents and insurance companies: We are paying attention.”

READ: Florida’s Largest Insurer Demands Evidence of Post-Hurricane Repairs

House Speaker Danny Perez echoed these sentiments, calling property insurance reform a legislative priority. While details remain sparse, Perez expressed determination to tackle the issue.

“Do we have a perfect solution yet? No,” Perez admitted. “But we are committed to finding one that improves the situation for Floridians.”

Citizens Seeks Rate Hike

The report’s findings come as Citizens requests a 14% rate hike for 2025 and continues efforts to “depopulate” by transitioning policyholders to private insurers.

READ: How Much Will Hurricane Milton Cost Insurers and Homeowners?

As Florida grapples with an increasingly volatile property insurance market, both lawmakers and consumers will be closely watching Citizens’ actions and the legislative response.

Follow us on Facebook, Instagram, Threads, Google, & X

(Image credit: Luis Santana/Tampa Bay Times/TNS)