Florida Insurance coverage Client Advocate’s New Initiative Targets Contractor Fraud
In an effort to coach shoppers about contractor fraud schemes which might be contributing to rising insurance coverage charges, Tasha Carter, Florida’s Insurance coverage Client Advocate (ICA), has launched a brand new academic initiative, Demolishing Entrepreneur Fraud: Steps to Keep away from Falling a Sufferer.
The brand new web site consists of info on how contract fraud is dedicated; bans on contractors and unlicensed changes, as set out within the regulation; and the way shoppers are affected.
“Deliberate deception and intentional acts of fraud drive up insurance coverage costs and hurt shoppers. Customers are primarily paying extra for much less. The supply and accessibility of satisfactory insurance coverage protection is drastically lowering, ”Carter mentioned. “I created Demolish Contractor Fraud to coach shoppers on spot fraud and defend in opposition to victims.”
Florida Insurance coverage Brokers Affiliation president and CEO Kyle Ulrich mentioned there was elevated involvement of contractors, roofers and water extraction corporations within the course of claims course of, which hurts Florida shoppers and main insurers to cut back insurance coverage protection and enhance charges.
“Many of those entrepreneurs typically have interaction in practices that inflate and exaggerate claims whereas additionally performing as unlicensed public experimenters,” he mentioned.
The Demolish Contractor Fraud web site educates shoppers about what solicitation of contractors is and the way it works. The positioning features a “Pink flag»Factsheet on entrepreneur warning indicators that buyers ought to be careful for, for instance: if entrepreneurs demand cash up entrance; are reluctant to supply proof of insurance coverage; supply funds or present playing cards free of charge inspection; or strain somebody to signal an task of advantages or another kind of contract in an effort to carry out a job.
The launch of the brand new initiative comes as Florida’s insurance coverage business and stakeholders, together with Carter, urge state lawmakers to cross property insurance coverage reforms to assist the insurance coverage market struggling in Florida. In keeping with the CIA, insurance coverage fraud prices greater than $ 40 billion per yr, elevating the insurance coverage premiums for a median household to between $ 400 and $ 700 per yr.
“Customers are confronted with dire circumstances and choices centered round dwelling insurance coverage protection,” Carter mentioned in a current interview with Insurance coverage Journal. She mentioned she heard every day from policyholders receiving massive charge hikes or who couldn’t discover protection in any respect as carriers confronted historic losses.
Carter was appointed by CFO Jimmy Patronis because the Florida Insurance coverage Client Advocate in August 2019. The CIA serves the pursuits of Florida insurance coverage shoppers by representing most of the people earlier than the Division of Monetary Companies (DFS) and the Workplace of Insurance coverage Regulation (OIR); evaluate the charges and kinds filed with the OIR; suggest actions to DFS and OIR; and symbolize most of the people on appointed boards and public boards.
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